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RETAIL BUYING 

MODERN PRINCIPLES 
AND PRACTICE 



CLIFTON c: FIELD 

t ► 

FORMERLY WITH MARSHALL FIELD & CO., OF CHICAGO, AND 
JAMES McCREERY & CO., OF NEW YORK; RECENTLY IN¬ 
STRUCTOR IN MERCHANDISING, UNIVERSITY OF WISCONSIN 



• » * 


SCRANTON 

INTERNATIONAL TEXTBOOK COMPANY 

1924 



Copyright, 1917, by Harper & Brothers. 


Copyright, 1924, by International Textbook Company. Copyright in Great 

Britain. All rights reserved. 


Printed in U. S. A. 



Press of 

International Textbook Company 
Scranton, Pa. 

1000 


IP 15 

S 

©Cl A 808819 


%\,<5 \ 



$6787 




PREFACE 

During the past few years retail merchandising has become 
highly competitive, and all activities entering into the conduct 
of a retail business have been subjected to careful analysis, 
for the purpose of developing improved methods. It has been 
evident for some time that a large part of the great success 
of department stores and of chain stores has been due to 
scientific buying. These buying principles can be applied to 
any retail business, and progressive merchants are awakening 
to the necessity of studying buying as they study other phases 
of their business. 

The author of this book has kept constantly in mind the 
conditions under which the average retailer works, and he 
includes only those methods that he knows to be practical 
under average conditions. He has had an unusual experience 
as a buyer and as a student and teacher of buying, and has 
also had an opportunity to draw upon the experience of suc¬ 
cessful merchants in every line of retailing. As a result the 
book will be found to cover the subject comprehensively but 
briefly. Supplementing the discussion of modern methods of 
buying is a discussion of methods of figuring prices and stock 
turns, of stock-keeping and stock-recording, and of the buyer’s 
responsibility in advertising and displays. 

International Textbook Company 


1000 









































































































































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CONTENTS 


PART 1—the merchant as a buyer 


Chapter 1 Pages 

The Buyer and His Qualifications. 3- 12 


The merchant as buyer; Fundamental buying methods; 
Know competition; Market merchandise, methods, etc. 


PART 2—MERCHANDISE 

Chapter 2 

Sources of Merchandise. 15-28 

Distribution; Manufacturers and jobbers; Buying ex¬ 
change; Salesmen; Bankrupt sales; Visiting the market. 

Chapter 3 

Types of Merchandise. 29- 40 


Branded merchandise; Value of the manufacturer’s 
name; Private and novelty brands; Exclusive agencies. 

PART 3—BUYING PRACTICE 
Chapter 4 

The Merchandising Plan. 43- 53 

Get the basic facts; Merchandizing plans and policies; 

Visiting the markets; Sizing up the markets. 


Chapter 5 

The Steps in Buying. 54- 66 

Selection of qualities; Prices and deliveries; Quantity 
prices, free deals, and extra discounts; Clearance prices; 

Advance buying. 


Chapter 6 

Determining Qualities .. 

Textiles; Cotton; Wool, Silk; Linen; Mercerized cot¬ 
ton; Yarns and fabric; Counts; Furs of different kinds 
and their grades; Groceries; Canned goods; Tests for 
other lines. 


V 








VI 


CONTENTS 


PART 3—BUYING PRACTICE— {Continued) 


Chapter 7 Pages 

Buying for Special Sales and Holidays. 89- 96 


“Jobs” samples; Competitor’s offers; Leaders for clear¬ 
ance sales; Holiday buying. 

Chapter 8 

Buying to Meet Competition.. 97-108 

Advantage of independent over chain stores; Mail¬ 
order competition; Retailer’s advantage over mail-order 
house. 

Chapter 9 

Determining Prices and Profits.109-120 

Cost or selling price; Figuring profit; Pricing merchan¬ 
dise; Figuring percentage of mark-up. 

PART 4—stock systems 

Chapter 10 

The Turnover .123-137 

Methods of figuring stock turns; Stock turns in depart¬ 
ment stores; Merchandise stock turn; How computations 
are made; Computing capital turns. 

Chapter 11 

The Inventory .138-153 

Preliminary work; Shifting stocks and examining goods; 

Taking stock while business goes on; Annual, semi¬ 
annual, or monthly inventory; Continuous inventory; 

Perpetual inventory system. 

Chapter 12 

Stock-Keeping and Stock-Recording.154-172 

Selling value of attractive fixtures; Fixtures for the 
up-stairs store; Store arrangement; Receiving room; 
Sampling; Arranging and handling open stock; Keeping 
fixtures in good condition; Arranging counter displays; 
Stock-recording systems. 

Chapter 13 

Instruction to Salespeople.173-191 

Meetings; Printed Information;- Bulletin-boards; Per¬ 
sonal attention; Teaching merchandise points. 









CONTENTS 


vii 

PART 4—STOCK SYSTEMS— {Continued) 

Chapter 14 Pages 

Cooperation in Advertising and Displays.192-210 

Buyer’s responsibility in advertising; Display work; 

Artist’s windows vs. merchandising windows; Back¬ 
grounds; Flooring; Amount of merchandise to be shown; 
Show-cards. 

Chapter 15 

The Buyer as a Merchant. 211-214 

Functions of the buyer; As a merchant; As salesman; 

As sales-manager; As merchandizer. 




















































PART I 

THE MERCHANT AS A BUYER 




RETAIL BUYING 


I 

THE BUYER AND HIS QUALIFICATIONS 

The Merchant as a Buyer. Merchandizing has been de¬ 
fined as the buying and selling of such goods as are needed 
or desired by the shopping community, and in such quan¬ 
tities as to take care of the needs. Merchandise is worth 
only what it will bring under competitive selling at the time 
of its sale, and therefore it must be obtained at a price which 
will allow a profit to the merchant. Considering the fact 
that a small profit with a quick turnover of the investment 
in merchandise will bring a bigger return than the higher 
profit and slower turnover, stocks must be kept down to a 
minimum consistent with taking care of all the usual needs 
of the store’s customers. 

Consequently good merchandizing begins with good buy¬ 
ing. The old adage is, “Goods well bought are half sold.” It 
is quite certain that if goods are not well bought the problem 
of selling increases with the carelessness or inefficiency of 
buying. No salesman can get enthusiastic over merchandise 
which he knows to be in any respect inferior, and any mer¬ 
chant who asks his salespeople to get full prices for inferior 
goods is responsible for the weakening of the moral char- 

3 


RETAIL BUYING 


acter of his employees. On the other hand, well-bought 
merchandise is a joy to every one connected with the store, 
from the proprietor to the delivery-boy. Each one feels 
that in contributing to its sale he is doing a real service to 
the one who purchases it. The necessity for good buying 
is the beginning of the merchant’s obligation to the com¬ 
munity he serves. 

Merchants everywhere realize this. Since the beginning 
of retailing with the itinerant merchant of the Roman 
Empire, the one who sells has been first of all a good buyer; 
else he is doomed to failure before he begins. In America 
most country retailers have first served a long apprentice¬ 
ship, during which they have obtained some little knowledge 
of their line of merchandise, and some idea of the principles 
of buying. 

Those who became most proficient as buyers grew and 
prospered in business, but always they have retained their 
interest in the buying end of the business. Marshall Field, of 
Chicago, A. T. Stewart and Benjamin Altman, of New York, 
T. Eaton, of Montreal—each was first and last a good buyer. 

Buying Methods Fundamental to All Retailing. It 
doesn’t matter whether the buying is done entirely by the 
proprietor, as in a small store, or by a staff of a hundred or 
more buyers, as in a large city department store; for the 
methods of good buying are fundamental to a retail store of 
any size. The only reason it is difficult to point to many 
cases of small stores that are following modern merchandizing 
methods is due to the fact that once the small store begins 
to use such methods it grows into a large store with amazing 
rapidity. John Wanamaker developed his present methods 
while a small merchant; and the same is true of every other 
“merchant prince” to-day. 

Personal Qualifications. To name the personal char¬ 
acteristics of the successful buyer would be to give those 

4 


BUYER AND HIS QUALIFICATIONS 


qualities which make a successful business man in any line. 
Ambition and self-confidence urge a man to make the most 
of the opportunities which he has, and help to keep him out 
of the rut of doing business just as he did last year and the 
year before that. Tact and judgment give him an ability 
to deal with men and to win their admiration. Loyalty and 
integrity give a man friends and associates who will support 
him in his business enterprises. But, over and above all, 
stands the ability to get at the facts of his particular business 
and the conditions under which he is carrying on that busi¬ 
ness. It is to the buyer who knows that comes a growing 
trade. The purpose of the remaining chapters in this volume 
is to show how the buyer may obtain the training necessary 
to his success. This first chapter also serves as an introduc¬ 
tion to these succeeding chapters, and as an outline of topics 
to be discussed in detail in them. 

Know the Local Needs. In order to serve any commodity 
successfully the buyer must know the needs of the community 
to be served. A progressive dry-goods buyer in a small 
town, realizing the need for a systematic study of the situ¬ 
ation, started to catalogue the people on whom he might 
be expected to draw for trade. He listed the population 
not only of his own town, but that of neighboring towns in 
his trading territory. He learned the proportion of men, 
women, and children in the population of that trading 
territory. He knew from his own experience the buying 
capacity of those who came to his store, and from this he 
judged that of the others. His own store records gave him a 
knowledge of the class of goods which these people would buy. 
With these definite statistics compiled from the result of his 
survey, he was ready to set about answering the question as 
to how he could buy for his clientele to better advantage. 

Know Your Competition. Every buyer faces the fact 
thxt he is not the only merchant in the field. His selling 

5 


RETAIL BUYING 


prices are largely regulated by competition. So he must 
buy to protect his profits. What the other stores in town 
are doing is just as important to him as knowing what he 
is doing in his own store. These are questions he must ask 
himself: “Is their line more complete than mine, and are 
they selling it profitably? Are they offering goods of equal 
quality at lower prices? If they are doing this profitably, 
why can’t I? If they are quoting lower prices on certain 
lines, what can I offer as 1 leaders’ that will attract pur¬ 
chases and yet enable me to maintain my prices on the 
standard goods?” Such questions as these must be answered 
by every merchant before he can operate his store success¬ 
fully. In fact, the majority of successful storekeepers have 
answered them even though they may not realize the fact. 

Then there is the competition which comes from the buyer’s 
trading territory. Competition from a distance must also 
be reckoned with, and the buyer must know broadly who 
his competitors are in this field, the character and nature 
of their competition, and its possible effect on him. Why is 
the grocery-store in the next town getting the trade which 
might come to him? How much business are the mail-order 
houses getting from his territory? What are the prices which 
are helping to draw money-orders through the mail? A 
careful study of such a condition will soon reveal to the buyer 
what goods are most frequently ordered from mail-order 
houses. The buyer who looks through the mail-order cata¬ 
logue circulating in his trading territory, and carefully studies 
the merchandise offered, will be in a better position to make 
up stock orders for each one. He will then know what goods 
he ought to carry in order to meet this competition success¬ 
fully. In fact, the whole problem of competition is based 
on knowing very definitely what is wanted, and on aiming 
to have a stock that will cover practically the entire usual 
wants of the community. The mail-order catalogues will 

6 


BUYER AND HIS QUALIFICATIONS 


give the buyer a very good idea of what merchandise is 
actually wanted by his community. 

Know the Selling Prices. Local papers, circulars, window 
displays in other stores, and visits to them, give to the buyer 
a knowledge of the prices which are current in his locality. 
Wherever a store is carrying a similar line of goods, there 
the merchant will find information which will help him in 
his own price-setting. A hardware buyer who persistently 
kept himself informed in this way said: “It helps me, be¬ 
cause I always try to give better merchandise at the same 
price, or the same lines my competitors offer at cheaper prices. 
I can’t always do it, but I get the business in the long run.” 

Know the Buying Market. The buyer’s knowledge of 
the buying market should be wide, specific, and detailed as 
possible. He should know not only the manufacturers, 
jobbers, manufacturers’ agents, brokers, co-operative job¬ 
bers, and all the other supply channels, but he should under¬ 
stand as well what reliance he can put on each. Where are 
the highest grade qualities obtainable? Where are the cheap 
lines to be found? How do the various firms stand on de¬ 
liveries? Which ones can be trusted for filling emergency 
orders? The buyer who does not know his buying field, 
and the current prices in it, is deficient in one of the most 
obvious requisites of good buying. 

Know the Merchandise. A technical knowledge of the 
raw materials which are used in the making of his commodi¬ 
ties and familiarity with the process of manufacture give 
the buyer a basis by which he may judge the finished product. 
To know the latest improvements in manufacturing methods 
and the manufacturers who are progressive enough to in¬ 
stall them gives an almost unfailing guide for buying quality 
goods at cheaper prices. A jewelry buyer once remarked, 
“ Find out which factory takes the greatest pains in choosing 
its raw materials, and which is at the same time most pro- 

7 


RETAIL BUYING 


gressive in the application of improved processes for making 
the goods, and then go to that company.” 

Again, knowing the raw materials which go into the com¬ 
modity, the buyer is in a better position to watch the market 
intelligently. The shoe buyer keeps in touch with the market 
in raw hides and leather, while the grocer studies the wheat 
market and buys flour by carload lots when a rising market 
is certain. Records and reports of market conditions are 
to be found on the financial page of the daily papers and in 
financial and trade journals. In this way the buyers in 
every line are often able to foretell a rise in price, and to 
buy to advantage because of their judgment as to probable 
future fluctuations in the wholesale price of the manufact¬ 
ured commodity in which they are interested. 

Know Marketing Methods. To know the most direct 
or advantageous methods of bringing his merchandise favor¬ 
ably before the public is essential to the buyer. For it must 
be remembered that buying and selling go hand in hand, 
and in nearly every store the responsibility for sales centers 
in the one who buys each line of goods. Just how far does 
it pay to advertise? What medium is best—local papers, 
circulars, or letters? A study of what has been used suc¬ 
cessfully by other merchants and personal experiment will 
offer the best guide to the determination of his policy. The 
question of store arrangement and merchandise display is 
of the greatest importance. Many sales are lost because the 
goods are hidden away in stock-rooms and on shelves, or 
because they are piled carelessly upon the counters, and in a 
way to show them at their worst rather than best advantage. 

Know the Best System of Store Records. It goes with¬ 
out saying that the buyer who is systematic about his busi¬ 
ness can buy more intelligently. A thorough though simple 
system of invoicing, stock-keeping, inventory, and record 
of demands is always essential. The buyer who devises and 

8 


BUYER AND HIS QUALIFICATIONS 


then uses a system that is capable of expanding with the 
business is laying his foundation for future progress. Fre¬ 
quently buyers figure lines as profitable when they really 
are not. A buyer of men’s clothing worked up a mail-order 
business in the surrounding territory, and at the close of the 
season he was pleased to find that only suits of a certain 
number remained out of an entire line. He felt he had made 
good profits, even though it should prove necessary to sell the 
remaining fifteen suits at a loss. When he figured out exactly 
the total expense, taking into consideration the cost of ser¬ 
vice, and of storage, and all elements entering into the trans¬ 
action, he found that the profit on the suits sold during the 
season would not cover the actual total expenses. Many 
retailers are in the same predicament. They figure they have 
made good profits and yet they are puzzled at their inability 
to find them. A thorough study of the business always shows 
that the system of accounting and cost-finding was faulty, and 
that the profits were fictitious. It is one of the first duties of 
the buyer to see that the record system of the store offers 
a complete record for his guidance in merchandizing. 

The Shoe Dealer’s Discovery. This point cannot be 
illustrated better than by the experience of a certain 
shoe-dealer in a small city. He had just finished a 
three weeks’ successful bargain sale, and was sitting at 
his desk looking over a large pile of bills and statements. 
He knew that other statements, including one from the 
local newspapers for use of large advertising space, would 
probably be in that morning’s mail, as well as bills for 
outdoor posters and special window signs. As the sale 
had been a lively one, and the bulk of the store’s odds and 
ends had been disposed of at a trifle above original invoice 
cost, he had no special misgivings at the prospect of receiv¬ 
ing and paying the bills for the special advertising. He had 
a good bank account. He handled well-known reliable brands 

9 


RETAIL BUYING 


of shoes, and his stores enjoyed a steady patronage through¬ 
out the year. But as he went over his bills, down toward 
the bottom of the pile, he came to a few things he had not 
expected. One was a note from his student agent at the 
college four miles from town, asking for the $4.50 commission 
for selling nine pairs of shoes to fellow-undergraduates. A 
printed notice reminded him politely that the gas bill for 
his store was overdue. A letter from a distant large city 
informed him that for twenty dollars per week the writer 
would accept the position of window-trimmer and would 
wait on customers “at odd moments.” The last thing in 
this merchant’s pile of Monday morning mail was a forgotten 
bill of fifty-eight dollars for refinishing the settees and pro¬ 
viding new fitting-stools for the store. 

He studied the window-trimmer’s letter and the fifty- 
eight-dollar statement for a few moments, then took another 
glance at the other bills and the manufacturer’s invoice of 
goods on the way. He made a few hesitating figures on a 
scratch-block, then clasped his hands behind his head and 
began to think out loud. “How much does it cost me to do 
business, anyway? What do I really get out of it? What per 
cent, do I make on my investments? Where do I stand? I 
wonder how last month’s expense compares with a year 
ago? What were my sales last month? That bargain sale 
must have helped.” He then asked the cashier, “What have 
you got in the way of records that you can refer to quickly 
and tell me exactly what our sales and expenses were last 
month and a year ago last month?” The reply was: “We 
have the total we paid out last month, and you know we 
have all the slips for the sales, but we don’t add them up. 
It will be a pretty big job to go through last year’s books 
and all that big bunch of sales-slips down-stairs and figure 
up the expenses and sales. What is it you want this for? 
Is anything wrong? We are practically up-to-date on our 

10 


BUYER AND HIS QUALIFICATIONS 


bills and collections, and the store bank account is as much 
as usual.” “No, nothing is wrong—so far as you’re con¬ 
cerned.” With which remark the shoe-merchant resumed his 
train of thought, and continued it for a good share of the 
forenoon. “What I, or any other shoe-dealer who expects 
to be successful, ought to know,” he said to himself, “is 
how much I am paying out a month for all expenses, what the 
different items are, what I actually net from the sale of goods, 
what percentage of gross and net profit I make—and then 
compare each month’s showing for every different item. 
How do I know what effect a good or poorly advertised 
bargain sale has on my season’s business? How do I know 
how much shoe polish and laces I can afford to give away? 
How do I know whether we waste electricity? How do I 
know whether I can afford 10 or 12 per cent, commission to 
my college agent, or twenty dollars a week to a window- 
trimmer? Me for the big find-out!” 

The Shoe Dealer’s Investigation and the Result. Where¬ 
upon this merchant proceeded to make life miserable 
for his cashier all the rest of that day and a part of the 
next, in digging up back invoices, jobbing price-lists, bills, 
and statements of all kinds, records of sales, commissions, 
discounts, rebates, and other data which had been slumber¬ 
ing, unused, in the store’s filing-cabinet. He classified his 
stock-purchases, sales, and all expenses for store main¬ 
tenance. He reduced these to a simple monthly record-sheet 
which could be filled out in about an hour’s time at the end 
of each month. He investigated his past operating expendi¬ 
tures sufficiently to determine a normal figure for each kind 
of expense each month, and thus obtained an accurate basis 
of comparison with actual future expenses. His new system 
enabled him to determine exactly what grades of goods he 
should push, and to watch and prevent unnecessary and un¬ 
profitable operating expenses. It showed him at a glance 


RETAIL BUYING 


what his total investment was and what net profit he was 
making from month to month. It developed him in fifteen 
months from an average easy-going dealer into one ot the 
keenest, most successful retail shoe-merchants in his State. 
And he did it all unaided. To-day he could get from any 
one of various sources at an expense of a few cents a com¬ 
plete system of accounting and cost-finding for his store, 
with complete suggestions for its installation. 

Know General Business Conditions. A knowledge of 
market conditions outside of his own line will indicate to 
the buyer in a measure, at least, what sort of a year is ahead. 
An ability to intelligently analyze the financial page of a 
standard daily paper or of a financial journal will help him 
to forecast conditions and know how his own interests will 
be affected. Rates of exchange, reports of clearing-houses, 
rates of interest, the movements of such commodities as 
iron, lumber, steel, the crops of the country, whether good 
or bad, all show the condition of business in general. Special 
attention to those industries on which the local market de¬ 
pends is of the utmost importance. The manufacturing 
enterprises of his community may be directly affected by 
these larger movements, and the buying capacity of his 
people at once shows the effect. 

Know Men. Because much of a buyer’s success is in 
proportion to his knowledge of conditions within and without 
his store, he should appreciate from the first the real ad¬ 
vantage to him in cultivating an ability to “mix.” Upon 
his knowledge of human nature will depend largely his 
ability to handle his employees and to meet salesmen with 
whom he is matching wits every day. But still more im¬ 
portant is the buyer’s need to keep in close touch with the 
customers of his store. From such association he learns of 
their wants, their tastes, their capacity for purchasing and 
for paying for the things he has to offer. 

12 




















































































































































PART II 


MERCHANDISE 











































































II 


SOURCES OF MERCHANDISE 

The Plan of Distribution. The process of distributing 
goods is like a chain, with the manufacturer or farmer at one 
end and the consumer at the other. The intervening links 
are the middlemen—wholesalers and retailers. The original 
chain of distribution necessitated that the merchandise pass 
through the whole channel of trade— i.e., from manufacturer, 
commission merchant, jobber, wholesaler, retailer to con¬ 
sumer. But the rising costs of merchandise, together with 
growing intensity of competition, has had a tendency to 
eliminate some of the middlemen. Advertising has also been 
a leading factor in drawing the manufacturer and the retailer 
closer together. 

Manufacturers. The manufacturer’s function is to alter 
the form of the commodities bought and sold so as to pre¬ 
pare them for consumption. He buys raw material and makes 
up the commodity, or he purchases articles already manu¬ 
factured by others and assembles them into new forms. 

Theoretically the manufacturer should be able to sell his 
goods directly to the retailer at a lower price than through 
jobbers. At first glance it would seem that the jobber’s 
work in handling the goods is simply an unnecessary extra 
step in the chain of distribution. In the case of large depart¬ 
ment stores and other large buyers, this is undoubtedly true. 
Such stores buy direct of manufacturers at prices as low as 

15 


RETAIL BUYING 


the jobber is able to obtain. It should be remembered, 
however, that in such instances both the manufacturer and 
the retailer incur considerable extra expense resulting from 
the elimination of the jobber and the jobber’s service. In 
the case of the smaller retailer who needs goods in small 
lots, the jobber service is greater and the jobber is more 
necessary. If the manufacturer must take care of such 
retailers, it is certain he must increase his prices corre¬ 
spondingly to offset the added expense of selling to them. 
Therefore, smaller accounts are not sought by manufact¬ 
urers. In fact, those manufacturers who are known to sell 
direct to the retailer do so only on condition that the re¬ 
tailer buy a certain specified quantity which enables the 
manufacturer to handle profitably the account. 

Jobber. To-day the terms jobber and wholesaler are 
practically synonymous. Originally, the jobber made a 
practice of dealing in jobs and broken lots of merchandise, 
while the wholesaler bought fresh lines in large quantities, 
and sold them in suitable quantities to meet the needs of the 
retailer or general merchant. We shall adopt the word 
jobber because it is shorter and more commonly used. 

The jobber, as we have seen, is one of the links in the chain 
of distribution. He buys merchandise, usually in large 
quantities, and at a gross profit of from 3 to 15 per cent., 
sometimes reaching 20 per cent., is enabled to resell to the 
dealer in smaller quantities and as desired. The jobber 
thus stands between the manufacturer and the retailer. 
He is able to gather together thousands of varied commodi¬ 
ties, made by hundreds of different manufacturers, place 
the merchandise within easy reach of the retailer, parceling 
it out to him as needed. In doing so, he performs a real 
function for both the manufacturer and the retailer. Even 
though some of the large manufacturing interests do dis¬ 
tribute their products direct to the retailer, it has been 

16 


SOURCES OF MERCHANDISE 


necessary for them to establish and maintain warehouses 
in different localities for the purpose of serving the retailer 
much in the same way as the jobbers otherwise would. 

The retailer, outside of the larger city department stores, 
could not survive without the aid of the jobber. Imagine 
the corner grocery, with its five hundred or more kinds of 
merchandise in stock, attempting to buy direct from the 
manufacturer. At least fifty manufacturers are represented 
in the average stock, and most of the merchandise comes in 
case lots, ranging from two dozen to a gross each. This 
retailer would have enough capital to purchase only a small 
number of the items he finds it necessary to carry in order 
to do business. Buying from the jobber makes it possible 
for this corner grocer, as well as for the larger retailer, to 
carry a well-assorted stock of merchandise. 

Manufacturing Jobber. Like the manufacturer, there 
are many jobbers who are in reality manufacturers, such as 
Lehn & Fink, Simmons Hardware Company, etc. This class 
of jobbers usually began in a small way by backing manu¬ 
facturing plants with limited outputs, and agreeing to take 
over their entire output. Thousands of grocery jobbers 
own canneries throughout the fruit and vegetable sections, 
and their own brands are put up according to their speci¬ 
fications so as to meet the wants of their own particular trade. 

The retailer, in doing business with them, deals just as 
he would with the manufacturer. He must take the mer¬ 
chandise as it is; that is, no changes are possible in either 
style or quality. Many of the advantages to be gained by 
dealing directly with a full-fledged manufacturer can be 
secured by trading with a manufacturing jobber. If full 
case lots are not purchased, the retailer can have this man¬ 
ufacturing jobber substitute other lines from his regular 
jobbing stock to make up a full shipment. 

The Semi-Jobber. Many manufacturers have different 
2 17 


RETAIL BUYING 


price-lists for the retailer and the jobber, instead of using 
the quantity method of gauging the price. Consequently, 
in order to get quantity prices, many of the big buyers of 
merchandise themselves turn jobber and make a practice 
of selling merchandise to smaller dealers. Thus they per¬ 
form the functions of both retailer and jobber, at a gross 
profit of from 3 to 15 per cent, on the jobbing end 
of the business. A Mississippi retailer found buying under 
such conditions quite advantageous. He was able to save 
eighteen hundred dollars during the year, and the system 
did not necessitate the purchasing of larger quantities than 
previously. As a source of supply for most retailers, how¬ 
ever, semi-jobbing affords only a limited field because this 
jobber’s retailing unit will be in direct competition with 
retailers buying from him. 

Commission Merchant. The commission merchant is 
found in every business community of any size. He is an 
independent link in the marketing chain. He usually repre¬ 
sents the manufacturer in selling to the jobber and large 
retailers, with the exception of those commission merchants 
in the produce business. He is only a minor factor in the 
distributive scheme, so far as the average retailer is con¬ 
cerned, and an explanation of his services does not for this 
reason require much space here. His services usually end 
with each particular transaction. It is well, however, for 
the careful buyer to know about commission merchants 
and what service they can be to him. 

The Buying Exchange. There is another distributive 
agency which has done much toward giving the retailer 
some of the benefits from buying direct from the manufact¬ 
urer, and that is the buying exchange. Such an exchange 
secures a number of retail clients, and through its single 
management buys direct from the sources of supply and then 
distributes a portion of the purchase among the members of 

18 


SOURCES OF MERCHANDISE 


the exchange. Through the services of the commission-man, 
or exchange-manager, as he is more often called, small 
grocery-stores may buy merchandise equally as cheap as 
many of the wholesale establishments, and cheaper than 
many of their larger competitors. In a single week ten 
carloads of flour were shipped into a certain city in a single 
shipment, to be divided among a number of retailers. Each 
one of a number of grocers paid quantity prices and was 
able to buy as little flour as he thought he could well 
handle. 

In the larger cities buying exchanges sell all kinds of staple 
domestics and commodities in the dry-goods line. The lead¬ 
ing merchant in one Southern city acts as an exchange- 
manager for many of his smaller competitors. He makes 
a practice of buying for all of the other merchants cotton 
thread and other commodities, where a quantity must be 
purchased in order to receive the extra discounts and bo¬ 
nuses. Thus they all receive jobber’s discounts on the mer¬ 
chandise bought in this way. The exchange, or one doing 
this co-operative buying, charges a fee, but, nevertheless, 
this is much less than the discount which the jobber secures. 

Salesmen. Prior to the Civil War, merchants found it 
necessary to visit markets in New Orleans, Cincinnati, 
St. Louis, Chicago, or New York City once or twice per 
year, in order to buy merchandise to carry them through 
the following six months or a full year. Each manufacturing 
concern or jobber, as the case might be, employed scouts 
who made a practice of hanging around the hotels with the 
idea of enticing the buyer to visit their employers’ places of 
business. 

Some of the more progressive manufacturers and jobbers 
soon discovered that these representatives could do a very 
profitable business by taking sample lines of the merchandise 
sold to the buyer in his store. This convenient method of 

19 


RETAIL BUYING 


buying made it unnecessary for many of the merchants to 
visit the market and lay in large stocks of merchandise. 
The traveling-man became the connecting link between the 
manufacturers and the merchant, and as a result practically 
every house of any size placed traveling-men on the road. 

Business conditions changed. Merchandise began to be 
sold on a smaller margin of profit because the wholesaler 
and manufacturer, who had previously taken long chances 
with merchants, now found it possible to do business with 
shorter credits and on much smaller accounts. Where they 
had previously sold a few accounts fairly large bills of mer¬ 
chandise, they found it possible to sell many accounts small 
bills of merchandise. Merchants began taking advantage 
of discounts because they, too, found the newer method of 
doing business more profitable. 

The traveling-man naturally becomes well acquainted 
with the merchant on whom he calls, his methods, and his 
business. He can well judge the financial standing, together 
with the merchant’s ability to do a successful business, and 
can sell him accordingly. The traveling-man has come to be 
regarded as the merchant’s best friend, although many mer¬ 
chants fail even now to realize the fact. He visits successful 
stores all over the country, picking up ideas which would 
be of benefit to the average retailer. 

Illustrations of the type of merchant who overlooks the 
value of the traveling-man’s friendship are common. A 
salesman told the writer why he disliked to visit a cer¬ 
tain store in a certain town. The merchant was of the 
type who never fails to impress the salesman with the im¬ 
portance of his own position. Frequently it was necessary 
for the salesman to stand around two-thirds of the day before 
he was given an interview, and sometimes he was then told 
that the merchant was not ready to buy that day. The 
salesman, having wasted two days before he had the chance 

20 


SOURCES OF MERCHANDISE 


to show his merchandise, quoted higher prices in order that 
he might offer a sufficient reduction to meet the merchant’s 
demands. In other words, this merchant bought discounts 
instead of merchandise. 

The traveling-man of experience is a valued help to the 
merchant. He has the merchant’s interest at heart because 
he expects to travel over the same route for many years to 
come. He makes an estimate of what merchandise the store 
can use and helps the merchant accordingly. A traveling- 
man doing business with a new retailer in a small Wisconsin 
town found he could readily sell one to six dozen of each 
number of his entire line. As a matter of good judgment, 
the retailer could handle in all probability, within a reason¬ 
able period of time, one-twelfth to one-half dozen only. To 
accept such an order would have been suicidal for the sales¬ 
man. So he persuaded the merchant to give him a sample 
order, trying out the merchandise before placing a larger 
one. It so happened the merchandise did not sell readily, 
and as a result the salesman made a lifetime friend of the 
merchant. 

An intelligent buyer should, of course, be open to convic¬ 
tion. Each salesman who calls should be seen at the earliest 
possible moment, and treated as courteously as possible. 
Many buyers say they have found it profitable to look at 
every line brought to them, and that they become in that 
way more familiar with the poor lines, as well as more expert 
in picking good ones. 

The retailer who does not visit the market frequently has 
a splendid opportunity of keeping his stock clean and up to 
date through the visits of salesmen. The salesman usually 
makes from four trips up per year, according to the line and 
the size of the territory. On each of his trips he has the 
newest and best selling merchandise his house is capable of 
producing. The merchant is able to remain in his store, 


RETAIL BUYING 


attend to business every day, and make selections of the 
needed merchandise. Even the biggest city buyers make it 
a practice to see all salesmen. They are, however, forced to 
make appointments in advance. 

Mailway. Certain manufacturers have begun a system¬ 
atic method of introducing their merchandise through the 
mails. They mail samples of their product, together with 
catalogue and price-list, to merchants all over the country. 
A bill is mailed for the commodity, and if the merchant does 
not care to try out the line he is at liberty to return it. 
The manufacturers who make use of this system maintain 
that it saves the retailer 15 to 25 per cent., and gives the 
buyer new commodities much more quickly than by the old 
way. They urge further that it covers the country for them 
in the same length of time required for the salesman to visit 
one city. 

Ready-to-wear merchants are beginning to realize that 
they can add considerably to their profit and increase their 
business by making a practice of writing various manufact¬ 
urers for samples of their products. The garment manu- 
. facturers are beginning to advertise their new and attractive 
garments, laying special stress on the offer of “Samples 
mailed on request /’ This enables the retailer to compare 
qualities and prices before placing an order. What is being 
done in this line may be done in almost any other. Although 
some manufacturers are much opposed to this plan, it could 
be forced on the manufacturer quite generally should the 
retailer insist. The plan has much to recommend it, and is, 
at least, worth a tryout. The retailer, however, should be 
careful, in making purchases by mail, to see that he gets the 
very best prices obtainable. A number of hardware-dealers 
recently found out, through the efforts of their national as¬ 
sociation, that their mail orders did not receive the same 
prices which their orders given to salesmen did. There was a 

22 


SOURCES OF MERCHANDISE 


discrepancy ranging from 2 to 90 per cent, in the difference 
between prices charged on mail orders and on those given 
the salesmen. 

Bankrupt Sales and Close-Outs. The buying of job lots 
and “close-outs” is an important question. Every day we 
learn of some buyer who has won riches and success through 
the system. Years ago this no doubt was true. The older 
traveling-men, out of Chicago and New York, tell of a 
successful merchant who was always in the market for 
jobs. His one weakness was that of buying all the “jobs” 
he could get his hands on and, strange to say, he usually 
sold all he bought. As soon as he reached the market and 
registered he was besieged with salesmen who had “jobs” 
to sell. He took long chances on every buy and generally 
succeeded in getting rid of what he bought. 

Some buyers have the proper outlet for any kind of mer¬ 
chandise they care to buy. They cater to the cheap trade of 
the town, and they are willing to buy anything that they can 
purchase at a bargain. Even in such places the chances 
are that some of the merchandise will not move at any price. 

There are many assortments of merchandise which should 
not be called “jobs.” Sometimes a house will have a few 
dozen of a certain commodity to be closed out. The mer¬ 
chandise is in perfect condition, fresh and crisp as it ever was. 
The mere fact that it is no longer a regular number does not 
lessen its value from the buyer’s viewpoint. Such offerings 
are not taken up with every house. Salesmen save the good 
propositions of this kind for their better customers, and an 
outsider seldom gets the opportunity to purchase. 

Stores catering to the better classes of trade find it 
more profitable to stock the best quality of merchandise 
which can be bought. They have a reputation to uphold 
and for that reason they must give the customer the best. 
“Jobs” and “close-outs” seldom have the clean appearance 

23 


RETAIL BUYING 


of regular stock, and in buying them the store is taking a 
chance. The element of style is also an important essential 
in the dry-goods field, and if the merchandise to be closed 
out is new, the jobbers are going to reorder on it. After 
all, cost and value are two different things. The merchandise 
may be worth much more than asked for it, but if it does not 
possess the necessary style or selling appeal its value is 
doubtful. 

Visiting the Market. In any lines of business visiting the 
market is a great help, and in some lines it is a necessity. 
Many kinds of merchandise are to be had in New York 
City, for example, which cannot be bought anywhere else. 
Then again, the change during a brief visit allows the mer¬ 
chant to see what is being done in other stores; it awakens 
him to the opportunities he may be allowing to slip by, and 
gives him an opportunity to pick up new ideas which will 
help him in his business. 

The time to visit market is governed to a great extent by 
the buyer’s location with reference to it. The ideal time 
in most lines is during February and August. During these 
periods the hotels are filled with buyers from all over the 
world. The manufacturers and the jobbers have a better 
and a more complete line of samples to show, and their 
facilities for showing are greater. 

The buyer, on reaching New York City, realizes that he 
is there to shop—not to have a good time. If he shops 
efficiently during the day, does his routine record work, 
attends to his correspondence, he finds himself pretty fully 
occupied. Buying requires a keen mind, quick thought, 
ability to judge merchandise, together with the knowledge 
of where to find it. 

The Buying Syndicate. Large city stores have found it 
profitable to maintain New York offices. They employ a 
staff of buyers who spend their entire time shopping and 

24 


SOURCES OF MERCHANDISE 


buying merchandise. Large stores not quite able to main¬ 
tain their own buying offices generally find that they can 
advantageously make use of a buying syndicate. Such an 
organization usually represents from twenty to fifty various 
stores, scattered over the United States, and its buyers scour 
the market for bargains to be sent on to the various stores. 

The advisability of the medium-sized and smaller stores 
maintaining a New York connection depends upon several 
conditions. First, the demand and use for such a connection. 
The proprietor of a small store in southern Tennessee, doing 
approximately a sixty-thousand-dollar business in general 
dry-goods, imagined that he required the services of a mar¬ 
ket connection. A six-hundred-dollar contract was signed. 
Outside of a weekly circular letter, telling what was being 
done in the New York City stores, he derived no benefit 
from the arrangement. The information service performed 
by the syndicate’s representatives could have been obtained 
with equal satisfaction by mail and through the trade asso¬ 
ciations and the trade press. The syndicate’s representa¬ 
tive secured the contract by explaining the great saving to 
be made in buying staples, hooks and eyes, featherbone, 
and other notions through the medium of his organization. 
The same saving, however, could have been made by placing 
quantity orders with the manufacturers sufficient to warrant 
the store’s being placed on the jobbing-list. Afterward the 
merchandise could have been ordered in the quantities 
needed. 

Second, the honesty of the agency. It has been said 
that some of the so-called “buying syndicates” make a 
practice of soliciting a commission from the merchant for 
buying the goods and at the same time receive a commis¬ 
sion from the manufacturer for selling. This, of course, is 
not the case with all. But there are oppcrtunities for such 
practices with small chance of detection by the average 


RETAIL BUYING 


retailer. Third, the competency of the agency. Some of 
the so-called New York office buyers are little more than 
clerks or messenger-boys. Many have no more ability or 
fitness for the work than the people behind the merchant’s 
counters at home. Other offices employ high-priced, effi¬ 
cient men who know the market. 

Assuming that a store needs such connection, that the 
business justifies it, and that an efficient agency has been 
found, a season’s trial should prove its worth. Such an 
agency, if it knows its business, can be of great assistance 
to a buyer when in market and at home. If the buying 
syndicate includes real buyers, allow them to use their judg¬ 
ment during the season, and abide by the results of their 
work at the end of the period. 

Limiting Sources of Supply. Each manufacturer and 
jobber natural’y advocates buying all the merchandise 
possible from a single manufacturer. Their argument is, 
“Make your account worth while and we will give you in¬ 
side prices, long credit, and extend other favors.” It is 
true that scattering purchases from dozens of houses tend 
to make an account less valuable to each of them. But the 
advisability of dividing the business depends upon the 
amount of the store’s cash capital and the amount of busi¬ 
ness done by it. 

A merchant with a large business and plenty of cash capital 
can afford to buy wherever he pleases and in whatever 
amounts he pleases. It is not necessary that he ask favors 
of any one, and every manufacturer or jobber seeks his ac¬ 
count. To get this account they are frequently willing to 
make inside prices and bid for the business. 

The smaller merchant, with a limited amount of cash, is 
not as fortunate as his more prosperous brother. Should 
he confine his business to one jobber, there is some chance 
that the jobber may not live up to his part of the contract, 

26 


SOURCES OF MERCHANDISE 


On the other hand, too many sources of merchandise are 
equally detrimental for the merchant with limited business 
and small capital. The smaller the business the greater 
necessity of confining the business to a few good houses. 
It is said that the manufacturers and jobbers watch a small 
retailer who makes a practice of buying from many houses. 
Should a retailer, following this practice, get into financial 
trouble, there is not as much chance of help because among 
many creditors it is more difficult to get an agreement to 
extend time. 

Consequently the smaller merchant’s chances are better 
if he selects a few high-class, reputable houses with which 
to do business. He will have no trouble getting credit if he 
needs it. When the opportunity presents itself to make 
good buys from other houses, other than those selected, 
there can be no particular harm in taking advantage of 
them. 

In buying merchandise, the original cost is not the only 
consideration. The retailer can sometimes get better quo¬ 
tations from a distant market, but after adding express or 
freight charges and allowing for the disadvantages of delays 
in shipment, the near-by center often has the advantage. In 
this case the merchandise is received promptly and better 
service is given. Rush orders may be filled on short notice, 
and exchanges may be effected with greater ease. There¬ 
fore, every retailer should strive to make some good connec¬ 
tion with a jobbing-house, or a manufacturer in a near-by 
market, as well as with the manufacturer or jobber in the 
more distant market where the merchandise may be bought 
for the lower price. 

Buying of Friends. A well-known retail store in a small 
town, using approximately five thousand dollars in furs each 
year, made a practice of buying from one house. The buyers 
would not take the time to investigate prices of other fur- 

27 


RETAIL BUYING 


riers. The salesman who sold the line purchased made a 
practice of coming into the town on Sunday, opening up 
his trunks in the store, and virtually selecting the bill for 
the buyers. Because of friendship this firm purchased their 
furs regardless of the price. This condition existed for ten 
years, and during that time the department lost money on 
its fur business. First, because the merchandise was not 
bought right, and, second, because too much was bought to 
dispose of during the season. 

Many keen buyers dislike doing business with “friends.” 
From their viewpoint, it is harder to turn the “friend” down 
than the ordinary salesman. They should, of course, have 
no scruples on this score, because friendship only begins when 
prices are equal. In buying, every man is in for himself and 
his own interests must come first. Therefore, buy for quality 
and price, and keep friendship out of consideration until 
after business hours. 


Ill 


TYPES OF MERCHANDISE 

Branded Merchandise. Branded or nationally advertised 
merchandise is that for which its maker or distributer creates 
a demand for the retailer. Advertising campaigns are 
launched in magazines, newspapers, street-car posters, bill¬ 
boards, and other mediums in order to familiarize the public 
with the brand and to induce the consumer to believe that 
this particular brand is best suited to his needs. Some manu¬ 
facturers have succeeded so well that their trade-mark is 
known to every one and the name of the product is at the 
tip of every consumer’s tongue. The retailer is the medium 
through which the wants of the public are satisfied. 

Quality. A branded commodity, through the aid and 
guarantee of a store, the co-operation of the salespeople, 
together with clever advertising, when established, wins the 
confidence of the public. The consumer tries the commodity, 
begins to have confidence in it, and is satisfied to try it again. 
The general belief is that it possesses good qualities and is 
the best that money can buy. Advertising has made the 
label a sign of quality. A stranger in a distant city may make 
purchases from stores of unknown reputation with perfect 
assurance that he is getting his money’s worth. The quality 
must be upheld if the confidence of the public is to be pre¬ 
served. Yet it must be conceded that there are many bulk 
lines and unadvertised lines which are equally as high in 

29 


RETAIL BUYING 


quality as the advertised products. The merchant should 
be capable of judging the quality as well as the other fac¬ 
tors affecting his decision as to branded vs. unbranded 
merchandise, for quality alone cannot be the determining 
factor. 

Value of the Manufacturer’s Name. Retailers handling 
branded lines do so because of the ready sale found for them, 
and in some cases because of competition. Seldom are such 
lines handled for the large profits made through the sale. 
Women’s Wear recently published the following statement, 
which emphasizes this point: 

That 87.6 per cent, of the people buy the advertised article 
in preference to the unadvertised, all things being equal, is the 
remarkable discovery made by Raymond B. Callahan in an in¬ 
vestigation into the effect of price-cutting on trade-marked grocery 
articles in Greater New York. The results of Mr. Callahan’s 
investigation are being sent out, in part, in a pamphlet issued by 
the National Trade Association. In investigating the advertising 
phase of the matter, Mr. Callahan offered the following question: 

Question 1—“When you go to a grocery-store and find two 
articles of similar nature for sale at the same price, one of which is 
a nationally advertised article and the other an unadvertised article, 
which article do you purchase?” 

The answer: 

87.6 per cent, buy the advertised article 
3.6 per cent, buy the unadvertised article 
8.8 per cent, non-committal 

100 per cent, total 

Conclusions: 

The condition stated in this question is one in which all things 
are equal on each side, except that one article is advertised and the 
other article is not advertised. 

The startling tiling about the replies to this question is the 
manner in which so large a percentage of the women admit that 
they are influenced in their purchasing by the advertising done by 
the manufacturer. 


30 


TYPES OF MERCHANDISE 


The replies are a proof of the claim made by the manufacturers 
that their advertising creates a good-will value for their trade-mark 
which is of great financial worth. They prove that manufacturers 
really have “good-will” which might be injured. 

The remaining questions were framed to determine primarily 
whether this “good-will value,” now proved to exist, is really in¬ 
jured, increased, or not affected at all by the retailer’s act of selling 
the trade-marked article at a price below the so-called “standard 
price.” 

Question 2—“When you find two articles of similar nature for 
sale at different prices, the unadvertised article being priced lower 
than the advertised article, which do you buy?” 

The answers: 

60.6 per cent, buy the advertised article 

24.2 per cent, buy the unadvertised article 

15.2 per cent, non-committal 

100 per cent, total 

Conclusions: 

In Question 1 both articles were on an even basis, except that 
one of them had advertising in its favor. In this second question 
both articles are on an even basis, except that one has advertising 
in its favor and the other has lower price in its favor. 

In the first question we determined the great power of adver¬ 
tising to sway the purchase in favor of an article which otherwise 
has no advantage over a competing article. In the present question 
we are enabled to determine the relative pulling power of “adver¬ 
tising” and of “lower price” as factors in competition. 

Under the conditions of the first question 87.6 per cent., or ap¬ 
proximately 90 per cent., of the women purchased the advertised 
article. Under the conditions of this second question the per¬ 
centage of women who purchased the advertised article drops to 
60.6 per cent. This is a difference of about 30 per cent, of the 
entire number of purchasers, and is a loss of approximately one- 
third of the purchasers which the advertised article had under the 
conditions of Question 1. In other words, to approximately one- 
third of the women the “appeal of price” is greater than the “ap¬ 
peal of advertising”; and to approximately two-thirds of the women 
the “appeal of advertising” is stronger than the “appeal of price.” 

This would seem to indicate that in so far as two-thirds of the 

31 


RETAIL BUYING 


women are concerned, the manufacturer need not fear attempts on 
the part of the retailer to substitute “private brands” of his own 
at a cheaper price, and that the ratio of the effect of advertising 
to that of price-cutting is two to one in favor of advertising. 

The opponents of advertised lines argue that the retailer 
is responsible for the public’s favoring the branded com¬ 
modities. The retailer advertises and pushes these lines 
because they are easier to sell. They supposedly require less 
effort on the part of the salespeople. “Any girl can sell 
a branded commodity,” says a well-established druggist, 
“when she hasn’t brains enough to do anything else.” The 
retailer is known to the trade and his name should be worth 
many times that of the manufacturer in that immediate 
community. Therefore, why should not he, the retailer, see 
that the customer buys the independent lines, the lines pro¬ 
ducing the best profit, on his recommendation? Should the 
merchandise go wrong the retailer (not the manufacturer) 
makes good the loss to the customer. Three out of five times 
the retailer can induce the customer to try a special brand of 
coffee. Should the coffee fail to come up to expectation it 
can be returned. How do the toilet-goods departments in¬ 
troduce the new odors in perfumes? The demonstrator per¬ 
mits the customers to smell them, thus creating a desire. 
Why can’t it be done in most other lines ? 

Manufacturer’s Aids. Manufacturers and jobbers of 
branded commodities insist that they not only create a 
demand for the retailer, but that they are continually fur¬ 
nishing him with selling aids. Various kinds of posters, 
form-letters, booklets, copy for advertising, cuts, electros, 
and other advertising matter are sent out to assist the 
retailer in building up his business. 

While it is perfectly true that this is done, much of the 
copy sent out is ineffective, lacking character or individuality 

from the retailer’s viewpoint. And the retailer feels that 

32 


TYPES OF MERCHANDISE 


he is paying for it all by paying a trifle more for the mer- 
chandise. 

Difference in Profits. A well-known line of bedroom 
slippers may be purchased, delivered, put in stock for sale, 
and marked to show a profit of 27 per cent. A slipper of 
equal sale value, unadvertised, may be purchased and 
marked to show a profit of 36 per cent. This is true in com¬ 
paring many branded lines with the unadvertised. The 
profit, in some cases, is even smaller than given in this ex¬ 
ample. The advocates of branded lines insist that the more 
frequent turnover will more than offset the small profit; 
they are also of the opinion that less time is required to make 
the sale. The argument, of course, is that the customer 
comes into the store to make the purchase of the branded 
commodity, and no time is required for the salesperson to 
make the sale. 

There is no doubt of the truth of this argument in many 
cases, as with those of the Ingersoll watch or the Big Ben 
alarm clock. Yet in many lines, like women’s ready-to- 
wear, the statement is of doubtful accuracy. For instance, 
an actual test of this principle by a large Wisconsin store 
resulted in the dropping of the branded line. During the 
entire time the advertised commodity was carried in stock 
no customer came into the store to ask for this special brand. 
Time was always required to create a desire for the specific 
article, and any other brand could have been sold in the same 
length of time. Usually the customer would select, on being 
shown both brands by the salesman, the unadvertised—the 
salesman, of course, forgetting to mention the brands. In 
advertising the lines no play was made on the name of the 
manufacturer. 

Few women make up their mind to purchase a certain 
brand before entering the store. Although few men like to 
shop around, they frequently purchase other lines than they 

3 33 


RETAIL BUYING 


started out to buy. A man, as a rule, however, is more 
easily persuaded by advertising to buy a certain brand. The 
woman likes to shop and she goes from one place to another 
comparing values before she makes a purchase. Nineteen 
out of twenty high-class store men will admit that they 
have still to see a woman come into the store for a specific 
branded article in women’s wear, asking for color, size, and 
make payment, ordering the merchandise wrapped. In most 
lines of business sales of twenty-five cents and over must be 
created by the salesperson before they are made. This may 
not be true in cases of special sales, however. 

Stock Turns. In carrying branded merchandise the re¬ 
tailer is frequently of the opinion that because a line is 
advertised more turns are made. For this reason he educates 
his salespeople to believe in branded lines, and they, in turn, 
put all their efforts on these lines. In other words, the sales¬ 
people frequently create the high value of branded mer¬ 
chandise in the minds of the public. A toilet-goods girl, 
while serving a customer who was comparing an advertised 
face-cream with one not so well known, was overheard re¬ 
marking: “ I would suggest that you take Blank’s. It is 
well known and we sell more of it. Besides, it is advertised 
in all the leading magazines, and it must surely possess 
quality.” The advertised cream was sold and the store 
netted seven cents on the sale, while the sale of the other, 
in this case equally as good, would have netted a profit of 
twelve and one-half cents. Both had the guarantee of the 
store behind them, and either could have been sold in the 
same length of time. 

Branded lines may be turned more quickly when reduced 
in price. Most customers possess a fondness for a bargain. 
An advertised commodity, regularly sold at fifty cents, may 
be sold more readily when reduced to forty-three cents. 
Many people will come in to buy, even though they are not 

34 


TYPES OF MERCHANDISE 


in need of the article. Some stores make leaders of such 
lines in order that they may bring customers into their 
stores. This, of course, reduces the margin of profit still 
further, but it brings publicity and more patrons are made 
for the store. The retailer is more capable of judging what 
the selling price of a commodity should be. He understands 
what the merchandise costs, the costs of doing business, to¬ 
gether with the knowledge of what the prospective customer 
will pay. 

Stocks may be turned in any line, and with any kind of 
merchandise, if the right effort is put into the work. The 
salespeople must be taught to believe in the merchandise, 
and the store must stand behind it after it is sold. Con¬ 
centrated effort, with the right kind of selling-talk, will cause 
the stock to move rapidly. 

Conclusion. Many merchants have begun careful in¬ 
vestigation of their stores with the idea of eliminating some 
of the branded lines and replacing them with merchandise of 
equal value or better line upon which a better profit may be 
made. Some brands, of course, cannot be eliminated with¬ 
out the loss of business. At the same time other merchants 
have done just the opposition, by throwing out all un¬ 
branded merchandise. It is still a mooted question. 

In the buying of merchandise it is necessary that the re¬ 
tailer place his customer and himself before the manufact¬ 
urer. Value must be found for the money. Merchandise 
must be offered which will bring friends and customers to 
the store and money for the merchant. Instead of buying 
advertising alone, as is sometimes done, good, honest mer¬ 
chandise must be bought. The retailer must push this 
merchandise and stand behind it. He is building up his own 
business and not the business of the trade-mark owner. Why 
not compare the branded merchandise with the non-adver- 

tised and purchase the best quality for the least money? 

3,5 


RETAIL BUYING 


Buy merchandise which will enable the customer to get the 
most for his money, and train the salespeople to educate the 
customer into buying this class. In some lines this will be 
found in nationally branded goods and in others in un¬ 
branded goods. It is the buyer’s job to know which to 
select. 

Private Brands. Closely associated with the nationally 
advertised merchandise is the question of private brands. 
Frequently it is found that retailers who are antagonistic 
toward nationally advertised merchandise favor private 
brands. The label of the private branded commodity may 
mean nothing or it may mean a great deal, depending entirely 
upon the character of the house selling the merchandise. 
It represents the house, its policy, and the merchandise. 
In other words, it is an absolute guarantee of the quality, 
backed by the owner of the brand, the retailer. A reputable 
store can well afford to have private brands and to push 
them; but private brands to the store of questionable repu¬ 
tation would be a losing venture. 

Novelty Brands. The retailer has found a method of 
educating the public to buy higher priced merchandise by 
carrying a stock of novelties. Manufacturers of men’s 
collars, for example, have found that they can do a profitable 
business by manufacturing collars of the novelty type, satin 
stripes or piques, which may be retailed at twenty-five, 
thirty-five, and fifty cents each. There are men who will 
purchase this class of merchandise and will be glad of the 
opportunity to do so. They add distinction to the store and 
tone to the stocks. This class of merchandise, as a whole, 
however, should be bought in small quantities only. As it 
is subject to sudden style changes, special care must be taken 
to see that no more merchandise is purchased than can be 
quickly turned. It should be purchased as soon as it ap¬ 
pears on the market, placed in stock, and pushed while it 

36 


TYPES OF MERCHANDISE 


is new. The “live-wire” retailer makes a practice of scour¬ 
ing the market for these new things, and reaps the benefit 
of his knowledge before the novelty wears off. 

A novelty, or a specialty, as it is sometimes called, may 
be one of two kinds: either an article which will be demanded 
by the purchasing public because of style, etc., or one for 
which the demand will necessarily have to be created by 
the retailer. Regardless of whether the commodity be an 
electric chafing-dish, a bronze vase, a piece of cut glass, a 
brand of fancy cheese, or a waist-pin, the buying is done in 
the same way. In the case of style novelties the buying 
is determined by study of the trade papers, fashion maga¬ 
zines, and other publications. The amount to be bought is 
gauged by the output of the store, together with the idea 
of how well the commodity will sell. When it comes to 
novelties for which a demand must be created, the buyer 
must rely upon his own judgment as to whether or not he 
can create the necessary demand. Of course, in either case 
a chance is being taken, but the experienced buyer can esti¬ 
mate fairly accurately the possibilities in an article. At the 
same time the buyer must keep constantly on the lookout 
for new things, because in many cases the greater part of 
his profit is made through this class of merchandise. 

Even though most buyers can well afford to take chances, 
care should be exercised in buying such goods. It is far 
better to buy too little than too much. Should the article 
prove a favorite more can be ordered at once, but if it turns 
out to be a “sticker” no price-cutting will move it. It must 
be bought, however, because it takes this kind of merchandise 
to sweeten up the staples and to assist in selling both. 

Exclusive Agencies. The advisability of having an ex¬ 
clusive agency differs with various shopping lines. In 
cloaks, suits, and men’s clothing a retailer, catering to the 
better class trade, can advantageously handle a restricted 

37 


RETAIL BUYING 


line. Customers make a practice of shopping through the 
various stores for such merchandise, and they are usually 
looking for exclusive models. Should the same garments 
be shown in different stores, no sale would result for any 
store. Of course, with popular-price merchandise exclusive¬ 
ness is not an essential. 

Piece goods (silks, fancy cottons, and novelty wools) sold 
to more than one merchant in a town or city will cause 
trouble. Frequently the plan of selling two or more mer¬ 
chants the same line, but different patterns, is followed. 
Mistakes are sometimes made, resulting in the same pat¬ 
terns appearing in the different stores. Each merchant is 
anxious to outdo competitors, and starts a cut-price cam¬ 
paign. The result is that no one makes a profit on the line. 

Corsets, underwear, hosiery, and kindred lines are in a 
different class from the other lines mentioned. There is 
little shopping from place to place for some particular pat¬ 
tern or style. The customer may want some special weight 
and she may shop until she finds it. But she seldom shops 
with the idea of comparing a style, quality, and price. With 
these lines, however, there are so many different sizes, 
weights, materials, and styles in each that if the attempt 
is made to carry a representative stock of more than one 
line, too large an amount of cash would be required for in¬ 
vestment, and justice would be done to no one. The ap¬ 
pointment to an exclusive agency, a complete stock in one 
line, backed by the enterprise of a live merchant, makes an 
ideal combination. 

A dealer who accepts the exclusive agency for a certain 
brand of flour, coffee, or any other grocery staple, does so 
in order that he may derive all the benefit from the manu¬ 
facturer’s advertising in the dealer’s immediate locality. 
Through handling this staple, even though the sale nets 
only a small margin of profit, the dealer is enabled to sell 

38 


TYPES OF MERCHANDISE 


other more profitable articles. Many of his customers, or 
prospective customers, become accustomed to use the staple, 
and they are necessarily obliged to purchase it through the 
dealer’s exclusive agency. This plan is not only useful to 
bring in trade that would go elsewhere, but it adds prestige 
to the store. 

The representative of a well-known implement manufact¬ 
urer tells of a small concern which secured the exclusive 
agency for his line of implements. The concern, being young 
and without much capital, made a business of supplying 
farmers who had the cash or whose notes could be discounted 
at one of the local banks. On the advice of one of the bank¬ 
ers the line was pushed for all it was worth. Being old and 
Well established, the small business began to profit by the 
reputation of the line. On securing the name of a prospect 
they sent out a regular follow-up to make the sale. A man 
when in the market for this sort of a commodity usually 
writes to all dealers and manufacturers for prices. Their 
competitors, in the mean time, were usually following the 
same prospect. These competitors, having more than one 
line to sell, sent salesmen, representing different manufact¬ 
urers, in turn, to see the prospect. Each salesman on dis¬ 
covering the fact that the dealer had previously sent a 
representative of a different manufacturing company out 
for the same purpose was sure to cut prices. The dealer, of 
course, was the loser because the cut would come out of his 
profit should the sale be made. The business with the ex¬ 
clusive agency, however, held for its price, relying on sales¬ 
manship and the quality of the commodity to make the sale. 

Exclusive Agencies and Advertised Brands. Those 
opposed to nationally advertised goods believe an ex¬ 
clusive agency to be a detriment to the business. The 
argument is usually advanced that the dealer spends more 
time advertising and pushing the manufacturers merchan- 

39 


RETAIL BUYING 


dise and reputation than he does his own business. This is 
true in many cases, but it is often due to the retailer’s own 
lack of business knowledge. Another argument which is 
frequently advanced is that after a retailer builds up a good 
business the line is taken away from him and given to some 
competitor. This may be true in some cases. But it ap¬ 
pears that no manufacturer or distributer of a line would 
be unbusiness-like enough to take a line away from a dealer 
who was doing well with it and living up to his agreement. 
If the dealer is not doing well with the line and it is not an 
asset, the dealer is better off without it. 

Any dealer who is favorable to nationally advertised goods 
would do well to secure the exclusive agency for some line 
of merchandise. In some cases, contracts guaranteeing the 
sale of a certain amount must be made. Before signing 
such contracts, careful investigations should be made to 
determine the possible market. 




PART III 

BUYING PRACTICE 







IV 


THE MERCHANDIZING PLAN 

Get the Basic Facts. One of New York City’s most suc¬ 
cessful rug-buyers delights in telling of an experience which 
early taught him the importance of getting a basis of facts 
before begimiing the buying. He began work in a small 
town in the Far West, and spent several years in clerking 
and in acting as the general handy man. Then one of the 
partners in the firm sold out his interest to the other. The 
new owner of the store, young and progressive, having some 
cash on hand, began making preparations for the expansion 
of the business. Many of the customers had been in the 
habit of visiting a near-by city to purchase floor-coverings 
and allied commodities not carried by the stores in the town. 
Of course each visit to the city meant the buying of other 
things which could have been purchased at home. There¬ 
fore it was decided to put in a first-class carpet-and-rug 
department, and as the young clerk in question was the most 
available man for the new department, even though he knew 
little about the merchandise, he was put in charge of it. 

As soon as the decision was made the new buyer went to 
Chicago with the owner of the store to select the opening bill 
of goods for the new department. In addition to staples, 
a special as a leader was under consideration. Fortunately 
they realized their lack of knowledge, so at the first whole¬ 
sale house they asked for advice in their selection. The 

43 


RETAIL BUYING 


sales-manager, a good-natured man of many years’ experi¬ 
ence, who took a fatherly interest in every one with whom he 
came in contact, listened to their story with interest. Fi¬ 
nally he asked, ‘‘Have you ever bought rugs before?” “No.” 
“Ever sold them?” “No.” Then he went on: “What is 
the population of your town? What kind of people do you 
have there? Do you cater to the better class? How much 
money have they, or do they live on credit? Are they free 
spenders? How much competition have you? What kind 
of merchants are they? Do the post-office people and the 
express agents have anything to say about the amount of 
money the people send out to the mail-order houses?” The 
sales-manager asked various other similar questions, and 
then said: “Suppose you come up to-morrow morning at 
nine o’clock. In the mean time think over the questions I 
have asked you. By that time I think you can answer them. 
Then we will proceed to size up the situation and decide 
on the lines you ought to carry.” 

The following morning they found the sales-manager on 
hand and ready for them. They discussed the questions at 
further length. Several huge stacks of samples were then 
laid out on the floor, and chairs were placed so the visitors 
could see the line to the best advantage. An attendant 
showed sample after sample, while the sales-manager and 
the visiting buyers commented on each. In many cases the 
visitors thought favorably of samples which the sales- 
manager passed by. Patterns which seemed suitable to the 
sales-manager were held out with a positive suggestion with 
which the buyers invariably agreed. After selecting about 
fifteen hundred dollars’ worth of goods they were told that 
they had a “good start,” and that as they could always get 
more on short notice, it would be a wise plan to try out the 
lines selected before buying more heavily. 

The sales-manager had actually selected the stock. But 
44 


THE MERCHANDIZING PLAN 

he made it appear as though the two buyers had actually 
done so. He had asked questions enough to find out their 
exact needs, and as a result really knew more about them 
than they did. The merchandise sold well and with the 
help of the Chicago house they built up a splendid business. 
Each time the new rug-buyer visited the city he learned a 
little more from this same sales-manager, until finally he 
was able to select merchandise designed to meet the demands 
of the trade and the competition in his locality without 
special assistance. 

Merchandizing Plans and Policies. These basic facts 
should include as complete data as possible on the people 
who compose the natural buying community, and the com¬ 
petition to be met. Upon this basis the merchandise plan 
and the merchandizing policies are determined. The plan 
will show how much business it is expected to do in each 
line, month by month, during the season: how much stock 
should be carried from day to day and at the season’s end, 
and what the price-range, mark-up, and turnover should be. 
Only upon such a basis can the buyer work intelligently. 

Visiting the Markets. When the buyer comes to the 
actual selection of merchandise, one of the most important 
questions which must be decided is whether he shall visit 
manufacturers and wholesalers in the buying season or de¬ 
pend on traveling-salesmen and on purchases from manu¬ 
facturers’ catalogues. The benefits gained by being on the 
field, to see full lines of merchandise, and to come into per¬ 
sonal contact with the manufacturers must be weighed 
against the expense involved. Experienced buyers regard 
the trip as an investment upon which they realize large 
returns in an accumulation of new ideas and information 
in regard to their lines. These visits to the market are es¬ 
pecially valuable to buyers of such commodities as dress- 
goods, ready-to-wear garments, shoes, and jewelry, in which 


MERCHANDISING PLAN 

FOR FIRST SEASON OF NEW STORE OPENING FEBRUARY, 1917 


RETAIL BUYING 


Total 
Estimated 
Sales for 
Season at 
Retail 

$ 5,000.00 

6,666.666 

2,666.666 

5,468.75 

5,625.00 

2,666.666 

5,625.00 

4,375.00 

1,575.00 

3,281 .50 

5,000 .00 

750.00 

8,000.00 

32,812.50 

666.666 

1,171 .875 

3,333 .333 

.700.00 

6,000.00 

7,500.00 

1,666.666 

$110,551,288 

Percent. 

Mark-up 

on 

Retail 

co l- 

iO co *o 

io»olooo*ooooooioco»oo*oo‘Oco*o*o»-o 

CMCMCMCMCMCMCMCMCMCMCMCOCMCMCMCMCMCMCMCMCM 


Average 
Stock at 
at 

Retail 

$3,333.33 

3.333.33 

1.333.33 
2,175.00 
2,500.00 

1.333.33 
2,812.50 
2,175.00 

525.00 
937.50 
1,666.66 
750.00 

5.333.33 

9,375.00 

333.33 

468.75 

2.333.33 

350.00 

3,000.00 

5,000.00 

666.66 

$48,735.39 

Percent. 

Mark-up 

at 

Cost 

\M\CO\C*5 \CO \CO \W VO VO \CO\M\CO 

i-KrH\pH\ r-\ r-\ i-K r-\ r-N rH\ i-<\ rH\ 

CCCOCOiCfcOCO^OiOOiOCOOCO»OCOFCCOOCOCOCO 

COCOCOCMCMCOCMCM^CMCOOCOCMCOCMCO^COCOCO 


Total 
Estimated 
Sales for 
Season at 
Cost 

$ 3,750.00 
5,000.00 
2,000.00 
4,375.00 
4,500.00 
2,000.00 
4,500.00 
3,500.00 
1,125.00 
2,625.00 
3,750.00 
500.00 
6,000.00 
26,250.00 
500.00 
937.50 
2,500.00 
500.00 
4,500.00 
5,625.00 
1,250.00 

$S5,687.50 

Turnover 

per 

Season 

\C8\^ \C^ \C^\C^ \^\C8 

rH CM CM CM CM CMCMCMCOCOCOr-lr-HGOCMCMCMCMCMrHCM 


Average 
Stock at 
Cost 

$2,500.00 

2,500.00 

1,000.00 

1,750.00 

2,000.00 

1,000.00 

2,250.00 

1,750.00 

375.00 

750.00 

1,250.00 

500.00 

4,000.00 

7,500.00 

250.00 

375.00 

1,000.00 

250.00 

2,250.00 

3,750.00 

500.00 

o 

o 

o 

o 

FO 

CO 

m 

Initial 
Stock at 
Cost 

$3,000.00 

3,725.00 

1,500.00 

2,000.00 

2,500.00 

750.00 

3,250.00 

3,250.00 

500.00 

1,000.00 

1,000.00 

600.00 

4.500.00 

9,000.00 

375.00 

500.00 

1,250.00 

300.00 

2,750.00 

6,000.00 

750.00 

o 

o 

IO 

CM 

IO 

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THE MERCHANDIZING PLAN 


the “latest style” is an important consideration. Buyers 
of specialty lines see many fads in vogue which they can 
introduce in their home towns with profit to themselves. 

For example, take the selections of women’s ready-to- 
wear garments by the buyer who has decided to visit the 
large manufacturing centers at least twice a year. It is 
especially true in this line that the retail buyer who can 
go to the market in the buying season finds there help which 
proves greatly to his advantage. The manufacturers and 
jobbers are competing with one another to have the most 
complete showing of new styles and fabrics. The large retail 
stores, as they are in direct and constant touch with the 
manufacturers, have merchandise not yet shown by traveling- 
salesmen. At the same time, merchants from every part 
of the country are in the city, and they are, as a rule, the 
most progressive and successful ones. They are always will¬ 
ing to discuss the problems of retailing and to show how 
they are solving them in their own stores. 

Preparation for the Visit. Here again we will assume 
that the buyer’s line is women’s wear. His first task is 
to plan the “campaign.” Given a limited amount of time 
and a definite range of buying to be done, which is to 
fit into the merchandizing plan of his department for the 
season, the careful buyer at once realizes the importance of 
doing at home everything possible in the way of prepara¬ 
tion. For he cannot take time while in New York or Chicago 
for anything which could have been done in advance. It is 
a great help to the wearing-apparel man if he has some idea 
of new colors and styles when he first calls upon the manu¬ 
facturer. Likewise, he must know what distribution he 
wishes to make of his buying allowance throughout the 
range of style, color, price, and size. 

The question naturally arises as to the method of getting 
this information before leaving home. It is obvious that a 

47 


RETAIL BUYING 


systematic study of the trade journals in women’s wear will 
give him an idea of the new styles, colors, and fabrics. Every 
such journal makes an earnest effort to inform the retail 
merchant of these facts and to give him all possible help. 
But not every buyer makes an earnest effort to use this 
material to the best advantage. One way of getting the 
information is to clip from the various trade journals the 
references to each different line, and to place them side 
by side, scrap-book fashion. Comparative notes can then 
be made from which a buying policy can be partly decided 
upon before starting for market. Advertisements and ar¬ 
ticles in the mercantile sections of such papers as the New 
York Times and the Chicago Tribune often give good hints 
on style tendencies. It is well, too, to watch the advertise¬ 
ments of the department stores and specialty shops in the 
market centers, for such stores vie with one another in being 
the first to offer strikingly new merchandise. When all of 
these hints of future demand have been arranged for ready 
reference, the buyer has a basis on which to make his in¬ 
quiries. 

His final selection of merchandise, however, necessarily 
takes into consideration the sales of the previous season, and 
his own knowledge of what his customers will buy. Here 
again he can make careful preparation for the trip. He knows 
the people who come to his store. He knows the quality 
of merchandise they demand. But the more exact this in¬ 
formation is the more definitely it can direct his selection. 
He will find invaluable any statistics of his business which 
will readily show him what he wishes to know when buying. 
For certain questions occur invariably to the careful buyer, 
and must be answered before his choice can be made to the 
greatest advantage: 

How many of this size did we sell the past season? 

What colors sold in large quantities? 

48 


THE MERCHANDIZING PLAN 


What were the popular prices? 

How much have we in stock now? 

Information on such points as these furnishes a valuable 
guide to purchasing. The accompanying chart shows the 
method one ready-to-wear buyer used in keeping track of 
the demand for children’s coats. The same method, with 
slight modifications, may be used for any similar line of 
merchandise. As the coats were sold, entry was made on 
the sheet. He took a copy of the entries with him on his 
visits to the manufacturers and jobbers, and referred to it 
when deciding on the distribution of his order throughout 
sizes, color, and price. Definite records of past demands 
did away with guessing, and told him all he needed to know. 

Another help which the buyer can prepare at home is the 
list of manufacturers whom he wishes to visit while in the 
city. A directory of the ready-to-wear houses will enable 
him to arrange his visits with regard to their relative loca¬ 
tion. A great deal of time is lost in going from one concern 
to another far distant, when others which are to be visited 
lie between the two. 

Sizing Up the Market Before Purchasing. Two buyers 
from small cities met on the streets of New York. 

“How much have you bought since you came a week 
ago?” asked one. 

“Nothing as yet,” answered the second buyer. “I’ve been 
looking in the large stores and taking numbers at the manu¬ 
facturers’.” 

“What do you want to do all that looking for?” asked the 
first man. “I know my trade. I’m hustling right through, 
and I’ll finish up long before you do.” 

He did finish quickly, but later he reported a “dull” sea¬ 
son, while the second buyer had “nothing to complain of; 
just busy every minute.” 

This instance illustrates two widely different methods of 

4 49 


CHART SHOWING DEMAND FOR CHILDREN’S COATS 


RETAIL BUYING 



50 







































































THE MERCHANDIZING PLAN 


working at the marketing center. The first buyer hurried 
through his buying. He relied on his own personal judgment 
and taste in selecting, without first finding out what had 
already begun to sell successfully at retail in the city. He 
bought from the first manufacturer who seemed to have a 
good line, without a careful comparison of prices and quali¬ 
ties at all the manufacturers’ whom he could visit to his ad¬ 
vantage. In short, he neglected the very opportunities of 
observation which a visit to the market offers. 

The trained buyer proceeds in the manner of the second 
man of the illustration. His study at home of the trade 
journals has given him certain ideas concerning the season’s 
demand. The first thing to be done on reaching the market 
is to ascertain whether his own estimates can be relied on. 
He has a guide in the merchandise which the large retail 
establishments are already selling. For they already have 
in stock the styles from which he must choose at the manu¬ 
facturers’. Visits to the retail stores of the higher class will 
show him what the exclusive trade is demanding. Here he 
finds the new models before the cheaper manufacturers have 
copied them. Polite inquiries and interest in the merchandise 
often induce the salespeople to show their entire line of new 
stock. They will tell what garments are popular and what 
seems to be the best style which the season has to offer. 
Often department heads will give the names of concerns 
from whom they have found it advantageous to purchase. 

To continue this systematic visiting of retail stores through 
all classes, from the higher priced to the cheaper, is to gain 
a knowledge of all qualities of merchandise on the market. 
From his own experience he knows the class of his trade and 
the demands of his own locality. A second visit to the 
establishments which carry corresponding lines to his own 
will verify his first impressions. 

Beginning the Buying. When he has finished this survey 
51 


RETAIL BUYING 


he has full knowledge of what the experienced heads of the 
large retail stores have bought and their estimate of the 
season’s styles. He is now ready to visit the sales depart¬ 
ments of the manufacturers and jobbers. To his own pre¬ 
pared list of concerns he adds those which he has obtained 
in his canvass of the retail stores. The wise buyer becomes 
a shopper. Before placing his order he goes to as many 
houses as possible. A comparison of prices and qualities 
is necessary for advantageous buying. If, for example, 
women’s and children’s coats are to be purchased, the com¬ 
plete line of women’s coats is inspected before beginning to 
buy for the children. The numbers of desirable styles are 
taken and notes made on the quality, color, and price. A 
comparison of these notes will readily show where the orders 
can be given with greatest profit. 

From many other angles, the time spent in looking at new 
lines, comparing values, and finding places where the prices 
are right, pays well. For instance, the manufacturer who 
has a good line one season may be entirely off the following 
year. Therefore, each season the buyer has to do over again 
the same work of checking up the good lines and the sources 
of bargains. While on a recent visit to New York a Western 
buyer received a request to buy patent-leather belts to retail 
at twenty-five cents. All the regular lines showed recent 
advances, which brought the price to twenty-four dollars 
per gross. After “shopping” an hour or so the same number 
was found in a small down-town manufacturing establish¬ 
ment at nineteen dollars. The quality was identically the 
same. 

Frequency of Buying Trips. Many ready-to-wear buyers 
visit the New York market once a month, and some as often 
as once a week, during the height of the season. On such 
trips the buyer should visit the restaurants and theaters in 
order to see what fashionable women are wearing. It is just 

52 


THE MERCHANDIZING PLAN 


as much a part of his work as visiting the manufacturers, 
and perhaps more necessary. 

Seeing What Well-dressed People are Wearing. A few 
weeks before writing this chapter the author was chatting 
with the proprietor of a large department store in a 
Middle-West city, when the buyer of ready-to-wear broke 
in to announce his return from a trip. In reply to the 
obvious question as to the success of his trip, the buyer 
replied: “I had a fine trip and got a lot of beautiful stuff, 
but I nearly ran my legs off doing it. I was so dead tired 
every night that I had to go to bed as soon as I got back to 
the hotel.” The proprietor exploded: “Why didn’t you use 
your head more and your feet less? If you had, you would 
have had a more pleasant trip yourself, and I dare say a 
more profitable one for the house. The next time take it 
easier during the day, and then go to the Ritz for dinner, 
and to the theater in the evening. Don’t take the manufact¬ 
urer’s word for the styles. Go where fashionable women 
go and see for yourself what they are wearing.” 


V 


THE STEPS IN BUYING 

The Buying Process. In each individual purchase of mer¬ 
chandise there are certain steps as the buyer considers one 
after another the various considerations affecting the in¬ 
dividual purchase. The general procedure is the following, 
but the relative importance of each factor will vary with 
each line of merchandise and with each class of merchandise 
within the line. In some lines not all these steps are present, 
while in others different ones will be included. 

{a) Determination of qualities, workmanship, and finish. 

(b) Selection of styles, colors, and sizes. 

(c) Decision on prices and deliveries. 

(d) Arrangement of terms and discounts. 

In addition to showing the steps in the buying process, 
such a classification makes it possible to test the desirability 
of each individual purchase. For instance, if two articles 
are offered, one of which is entirely satisfactory from the 
standpoint of the first three steps, and another from that 
of the last three, which would be the preferable purchase? 
One purchase might be 90 per cent, satisfactory, and the 
other only GO per cent, satisfactory. But the main value in 
such a classification is to serve as an exposition of the buying 
procedure. For purposes of explanation it is best to illus¬ 
trate with a particular line. As women’s ready-to-wear is 

54 


THE STEPS IN BUYING 

probably one of the most difficult lines to buy, that has been 
selected. The method in general, is equally applicable to 
any type of merchandise. 

Women’s Ready-to-Wear 


Inexpensive Grades 

1 . Decision on price and delivery. 

2 . Selection of styles, colors, and sizes. 

3. Determination of qualities, workmanship, and finish_ 

4. Arrangement of terms and discounts.. 


40% 

30% 

20 % 

10 % 


1 . 

2 . 

3. 

4. 


Medium-priced Grades 

Determination of qualities, workmanship, and finish.. . . 

Selection of styles, colors, and sizes. 

Decision on prices and deliveries. 

Arrangement of terms and discounts. 


100 % 

35% 

30% 

20 % 

15% 


1 . 

2 . 

3. 

4. 


High Grades 

Selection of styles, colors, and sizes. 

Determination of qualities, workmanship, and finish.. .. 

Decision on prices and deliveries. 

Arrangement of terms and discounts. 


100 % 

35% 

30% 

20 % 

15% 


100 % 


Price is therefore the biggest factor in the inexpensive 
merchandise and is twice as important as quality. In the 
medium-priced merchandise the condition is practically 
reversed, while in the highest grades style becomes pre¬ 
dominant over both. In all cases the bargaining for terms 
and discounts is left until after all the other steps have been 
completed. 

Subdivision of Steps. Next the different steps may be 
subdivided so as to show what each one includes. Here 
again it is necessary to take a specific case in order to show 

55 












RETAIL BUYING 


the subdivisions because of the fact that they would vary 
widely with each time and each grade of merchandise. 

SUBDIVISION OF STEPS 
Medium-priced 
Ready-to-Wear Merchandise 

1. Determination of qualities, workmanship, and finish. 

(a) Testing for raw material. 6% 

( b ) Judging process of manufacture. • 3% 

(c) Estimating cost of manufacture. 4% 

(d) Feeling for weight. 2% 

(e) Sizing up any guarantee. 6% 

(/) Examining for flaws. 5% 

(i g ) Valuing the finish (machine or hand). 4% 

(A) Ascertaining care used in exterior finish. 2% 

(i) Ascertaining care used in interior finish. 3% 

Total. 35% 

2 . Selection of styles, colors, and sizes. 

(а) Selection of style according to demand. 5% 

(б) Selection of style according to latest fashion. 5% 

(c) Selection of style according to amount on hand 5% 

(d) Selection of color according to demand. 2% 

(e) Selection of color according to latest fashion . 2% 

(/) Selection of color according to amount on hand 2% 

(i g ) Selection of sizes according to previous demand 6% 

(h) Selection of sizes according to changing con¬ 
ditions . 3% 

Total. 30% 

3. Decision on prices and deliveries. 

(a) Judging prices which can be obtained. 6% 

(b) Figuring net landed cost. 1% 

(c) Determining gross profit. 2% 

(d) Comparing gross profit to cost of doing business 6% 

(e) Ascertaining date of deliveries. 2% 

(/) Agreeing on date of delivery. 3% 

Total. 20% 

56 





















THE STEPS IN BUYING 


4. Arrangement of terms and discounts. 

(а) Obtaining best terms and discounts under 

conditions. 10% 

(б) Comparing terms and discounts with that of 

other houses handling similar lines. 2% 

(c) Comparing terms and discounts with quality, 

style, and price to get relative value. 3% 

Total. . 15% 


Grand total. 100% 


Selection of Qualities, Workmanship, and Finish. The 
subdivisions of this subject, except that of raw material, 
are almost entirely self-explanatory. The detailed methods 
of testing the raw materials are given in Chapter VI, under 
textiles. It is here that long experience in dry-goods, and 
particularly ready-to-wear, with some knowledge of manu¬ 
facturing processes, is of great value. It is obvious, however, 
that a detailed discussion of the subject would require sev¬ 
eral volumes; so that the author must content himself, much 
to his regret, with a statement of the various points to be 
considered. 

Selection of Styles, Colors, and Sizes. Already there has 
been discussed as a preliminary to the buying trip the means 
of getting all possible information on styles and style ten¬ 
dencies. It is well to point out here that the buyer’s suc¬ 
cess comes not from being able to buy a complete stock of 
all good styles, colors, and sizes, but from buying a small 
representative stock to suit his own clientele, and so avoid 
the loss from overstock. Every merchant knows, too, that 
the showing of too many garments will spoil a sale. The 
customer becomes confused and finally decides to “look 
further.” The next store sizes her up and shows only two or 
three of the most likely garments, with the result that a 
satisfactory selection is made promptly. Therefore the mer¬ 
chant in a small city may compete successfully with his 

57 








RETAIL BUYING 


metropolitan competitor if he will but study his merchan¬ 
dise problem. Small but intelligently selected stocks are 
more desirable for real merchandizers. 

Prices and Deliveries. After having decided on the gen¬ 
eral price that the article under consideration falls within, 
the first consideration is what the customer will give for an 
article. One ready-to-wear buyer has a habit of taking one 
or two of his clerks with him on his buying trip. When 
a garment is shown, if it looks suitable, each clerk is asked 
to state what she thinks it would bring. From this is sub¬ 
tracted the cost price, of which the clerk is ignorant so far, 
and the gross profit is obtained. If it is satisfactory, the 
garment is considered; otherwise it is passed by at once. 

If the garment is bought, it is entered up on the buyer’s 
buying-chart along with the selling-price. This data is for¬ 
warded at once to the buyer’s store, if he is away on a buy¬ 
ing trip, so that the goods may be priced and put on sale 
as soon as received. 

Quantity Prices, Free Deals, and Extra Discounts. Prac¬ 
tically all manufacturers and jobbers have a regular scale 
of prices with regard to quantity orders. This quantity 
price may be given by pricing the merchandise per single 
unit; a lower price, each, per dozen; a still lower price, 
each, per gross; and so on. Or special price concessions may 
be given in the form of free deals. Various manufacturers, 
finding that many of the smaller retailers object to quantity 
prices, allow the big buyer two to three dozen free goods 
with each gross purchased. By following such a plan they 
are enabled to advertise, “One price to all dealers,” and to 
impress the smaller buyer with the fairness of the proposi¬ 
tion. The free goods, in some cases, are billed as advertis¬ 
ing. Many manufacturers of toilet goods make a practice 
of entering the free goods on the regular bill without price 
extension. 


58 


THE STEPS IN BUYING 


A good illustration of quantity price was given by a 
manufacturer of cheese during this past season. The buyer 
of a well-known New York City store was favorably im¬ 
pressed with the line, but the store, being a price-cutting 
establishment, was forced to ask quantity prices on all mer¬ 
chandise purchased. The manufacturer featured a one- 
price policy, but he needed this account. In order to meet 
the buyer’s terms the sales-manager closed a large order 
with the firm, agreeing to rent space from the store for 
demonstration purposes and to employ a demonstrator. 
The amount which was paid the firm equaled the difference 
between the regular price of* the cheese and the price the 
buyer was willing to pay. The buyer did not care how he 
got the price, and this plan offered an ideal way for the 
manufacturer to get around quantity prices. 

The extra discount also furnishes a method of getting 
around the quantity price. The merchant who buys in 
small quantities gets 2 to 3 per cent., depending upon the 
kind of merchandise being bought. Another, buying in 
large quantities, gets 3 to 5 per cent. A third, who buys 
even larger quantities, may receive 7 or 10 per cent. To 
avoid all chance of detection all bills are marked, “ Terms 
as had.” It should be remembered, however, that all firms 
making a practice of marking bills as described do not make 
a practice of giving quantity prices, although a large pro¬ 
portion do. 

It is generally understood that no manufacturer can make 
a single article as economically as five hundred. Nor can a 
sales man or a sales-manager sell one article as cheaply as 
one thousand. The larger orders require not only less selling 
expense proportionately, but less clerical work per article. 
They may be bunched and turned out by the thousand, re¬ 
ducing the cost of manufacturing, as well as handling and 
shipping. The smaller buyers, however, are usually an- 

59 


RETAIL BUYING 


tagonistic toward quantity prices, while of course the large 
buyers favor it. It is possible for a number of the smaller 
buyers to co-operate in the purchase of their merchandise 
in quantity, taking advantage of the quantity price and 
placing each individual merchant in a position to compete 
with his larger competitor. 

Clearance Prices. Manufacturers, as well as retailers, 
find clearance sales necessary. In ready-to-wear merchandise, 
at the close of a retail buying season, from November 20th 
to January 30th, and May 15th to July 15th, manufacturers 
are anxious to close out all remaining merchandise and de¬ 
vote their time, energy, and money to lines for the coming 
season. Therefore many will dispose of goods on hand at 
actual cost, and in some cases below cost. On December 
1st one Wisconsin retailer bought, at $10.75 net, one hundred 
coats, identical in every way—cloths, styles, and numbers— 
with coats which had been purchased earlier in the 
season priced at $15, $16.50, $18, and $21.50. These coats 
were marked at the same prices as the original numbers, 
namely $19.75 to $35, and after Christmas all that re¬ 
mained found ready sale when reduced to $15 to $22.50. 
On February 1st fifty more of the same numbers were pur¬ 
chased at $5.90 net, and these were marked and sold at 
$10 net. The customers received extraordinary values, 
and the merchant realized large profits. 

Terms and Discounts. The cash discount, a premium 
for cash, is given too little attention by many buyers. A 
department-store buyer, of eighteen years’ experience, was 
overheard remarking to a salesman, “I have nothing to do 
with the discount, and I do not care whether it amounts to 
1 or 10 per cent. The office gets all credit for discounts.” 
This buyer acknowledged that he was not interested because 
he did not receive credit. Yet he failed to ask for the net 
price, which is a wrong way to merchandize. 

60 


THE STEPS IN BUYING 


A large Cleveland ready-to-wear merchant made the state¬ 
ment early last year: “I am a successful merchant because 
I take advantage of every discount offered. Last season 
my profits amounted to thousands, and practically every 
penny was made by taking advantage of the discounts.” 
Another merchant, of Oshkosh, Wisconsin, while in New 
York on a buying trip, remarked, “I am perfectly willing to 
accept my discounts as profit from my business, and I shall 
be satisfied if that is all I receive during the year.” 

These discounts amount from 1 to 10 per cent., depending 
upon the kind of merchandise. Staple commodities usually 
carry a discount of 2 per cent., ten days, meaning that the 
purchaser is entitled to 2 per cent, if the bill is paid in ten 
days’ time. This is equivalent to 36 per cent, per annum. 
Other merchandise carries better discount—5, 7, and 10 per 
cent.; 7 per cent., if paid within ten days, nets an interest 
rate of 126 per cent. Some few manufacturers make a prac¬ 
tice of selling merchandise at list price, retail, less 30, 40, or 
50 per cent., less 5 or 6 per cent., and then less 2 per cent, 
for cash. A five-dollar pen would be subject to 40 per cent, 
discount, or $2. From this would be deducted 6 per cent., 
which leaves $2.82, and then 2 per cent, of the remainder, 
or five cents, making the net cost $2.72. These figures show 
that we are paying an unusually high rate of interest if we 
are not taking advantage of discounts, when we consider 
money may be borrowed for 5 or 6 per cent. 

The term dating means to date into the future. For ex¬ 
ample, a grocer buys a car of fruit, with a dating of ninety 
days, subject to 2 per cent, per month if paid before due. 
This is, however, a very unusual happening in that line. 
Frequently lines of merchandise carried by the department 
store may be bought under such conditions, although one- 
half of 1 per cent, is allowed, as a rule, instead of 2, in 
addition to the cash discount. Such extra or forward dating 

61 


RETAIL BUYING 


is usually given where the account is large and the manu¬ 
facturer is extremely anxious for the business, or where the 
manufacturer must unload his stock. It is common in cer¬ 
tain lines. For instance, the usual terms in the white-goods 
trade is 2 per cent., ten days, sixty days’ extra dating. If 
the goods are sold for delivery on September 1st, they are 
billed as if sold two months later. The retailer is entitled 
to the cash discount of 2 per cent, if he pays the bill by 
November 10th, but if he pays it by September 10th he gets 
an extra 1 per cent., which is really interest for the two 
months anticipated at 6 per cent, per annum. 

Advance Buying. Frequently traveling-salesmen tell of 
meeting merchants who refuse to place advance orders for 
merchandise. These may be dealers in hardware, shoes, 
clothing, women’s wear, dry-goods, groceries, or jewelry, 
and may think that they have good reason for refusing. 
They may believe that the coming season will be late and 
that they will have plenty of time to place their orders later, 
with every assurance of having the merchandise delivered 
on time. Possibly they judge that the market shows a 
tendency for a decline in prices, and that they will save 
money by buying later. Should their judgment be found 
incorrect, and should the season turn out to be early, with 
an advancing price for the commodity, the merchant, of 
course, is the loser. Even though the prices are not advanced, 
there will be a loss because of the early sales that will be 
lost. Regardless of what the season may be, these dealers 
fail to consider that many desirable patterns and styles will 
be closed out by the time they get ready to buy, and that they 
must take what is left. Sometimes desirable merchandise 
cannot be found at a moment’s notice, and in all cases 
some time must be allowed for delivery. 

On the other hand, some merchants are easily imposed 
upon. The traveling-men come in, show their samples, and 

62 


THE STEPS IN BUYING 


take orders for the greater portion of merchandise to be 
used during the season. The merchant, believing that the 
season will be an early one, or that the prices will be ad¬ 
vanced, decides to protect himself. Some years ago the 
cotton market was unusually high. “Hope” domestic was 
selling at nine and one-half cents, wholesale. Gingham, 
percale, and prints were priced accordingly. A successful 
retail merchant south of Louisville decided that the 
prices were going still higher and that he could well afford 
to protect himself. The market did go up a few points 
after the merchant had filled his reserve stock-rooms and 
all the available space in his store with cotton, but before 
the season had well started the bottom dropped out of the 
market and the merchant realized that he was caught 
napping. Every attempt was made to unload. The mer¬ 
chant had guessed wrong. He had overbought and had 
ruined himself. Too heavy advance buying, no matter what 
the season happens to bring forth, is disastrous. It means 
dollars tied up which should be working in other stock. 

The wise merchant plays safe. He profits through the 
example of others. Enough merchandise is bought to take 
care of the opening trade, should an early season develop, 
and new goods are bought continually throughout the season. 
This assures him of being taken care of in case merchandise 
should later prove difficult to buy; while it does not mean 
a big less should the market drop. The interest on the work¬ 
ing dollars will more than offset any profit that is to be made 
on a gamble at buying for higher prices. This is conserva¬ 
tism, through which success is won. 

Cancelations and Returns. Manufacturers and jobbers 
are, to a great extent, responsible for the majority of can¬ 
celations and returns in every business. A short time ago 
a salesman visited a well-known department store with a 
sample line of waists. Among the lot shown were three es- 

63 


RETAIL BUYING 


pecially good values in Japan silk and crepe de Chine. One 
Japan silk, made of a five “mumy” Jap., very full, with large 
collar and novelty cuffs, was priced so low that the buyer 
ordered one hundred dozen, to be shipped in three different 
shipments. In order to make sure that he would get the 
same quality of silk he kept the sample shown. Six weeks 
later one-half of the order was received. Upon investigation 
and comparison with the original sample, it was found that 
a three “mumy" Japan silk had been substituted, making 
a difference of, approximately, sixty cents in the actual 
value of the waist. The entire shipment was reboxed and 
held until the manufacturer sent his check to cover freight 
charges and dray age. The manufacturer had taken a chance 
on substituting, in the hope that some subordinate would 
open and mark the merchandise and that the mistake would 
not be noticed until the payment had been made. 

Many mistakes will occur in the cloak-and-suit business, 
unless merchandise is bought of reliable houses. When buy¬ 
ing, charts are used to show what sizes are needed in the 
various colors, and unless the merchandise or receipt is 
checked with the charts, the buyer will soon discover that 
many of his suits or coats are the same size and color, fre¬ 
quently size 34 or 36. The manufacturers take the liberty 
of shipping any size or color that they happen to have on 
hand, hoping that the marker will place the merchandise in 
stock without an investigation. It is also found that many 
damaged garments slip in. No retailer can afford to take 
the chance of failing to examine and check accurately all 
merchandise received, never failing to return merchandise 
if it does not come up to specifications and requirements. 

Some grocery and hardware men complain that they do 
not receive merchandise which has been on order several 
months. Investigations show, especially at the present time, 
that many times orders are being held back and more recent 

64 


THE STEPS IN BUYING 

orders filled for which advance prices were secured. When 
placing the order, an agreed time of delivery should be en¬ 
tered on the order, and if the merchandise is not delivered on 
time inquiry should be made at once. A follow-up of fre¬ 
quent letters of inquiry will often produce results. 

Unfortunately, there are just as many unscrupulous re¬ 
tailers as manufacturers. There are some who pride them¬ 
selves on taking advantage of a manufacturer or a jobber. 
Such retailers deserve just what they give, and no manu¬ 
facturer could be blamed for reporting the offense to the vari¬ 
ous trade associations. A manufacturer has a perfect right 
to expect the same kind of treatment he gives his customers. 

Allowing the Salesman to Buy Your Business. The 
young buyer, breaking into the New York City market, is 
constantly impressed with the number of salesmen who are 
anxiously waiting to buy his business. Hotel lobbies are 
full each morning of salesmen who are waiting to pay for 
some buyer’s breakfast in the hope that he will be able to 
get the firm’s business. Other salesmen are anxious to make 
engagements for luncheon, and to take in the sights of the 
city in the evening. They seem to have the idea that the 
entertaining is necessary if they expect to get the business. 
It is perfectly true that some few (poor, unfortunate, de¬ 
luded) buyers get the impression that in order to succeed 
as buyers they must take everything that comes their way. 
They make a point of sponging on every salesman possible. 
They never feel that they are placing themselves under ob¬ 
ligation to the salesman, or that they must buy his mer¬ 
chandise, regardless of what they are capable of finding in 
other places. 

Several months ago, in a Wisconsin department store, one 
of the young women went to the merchandizer with an order 
to be signed. It was for merchandise bought of a new house, 
and amounted to several times what had been bought sev- 
i 65 


RETAIL BUYING 


eral months previously. She was so anxious to get the order 
signed that the merchandizer began to suspect something 
wrong. Therefore he had one of the other girls in the de¬ 
partment look up the merchandise. Enough merchandise to 
last six weeks was found in reserve stock. The young buyer 
declared she had been unable to find any. Later it developed 
that the salesman had entertained the young lady, and she, 
in turn, had agreed to see that he got an order. In other 
words, she was willing to make her employer pay for the 
good time she had had the evening before. 

This is exactly what the buyer attempts to do when he 
accepts a salesman’s too lavish expenditure. Many mer¬ 
chants make it a practice to entertain their own buyers at 
their own expense when on buying trips, in order to insure 
the right buying of the merchandise. One of New York’s 
most successful retail buyers remarked, “When I go into 
business I shall never allow any employee to accept as much 
as a cigar from any one with whom I am doing business, 
or with whom there is a chance of their having any business 
relations.” This is a good rule to follow, and all buyers, 
both small and large, should give it due consideration. 


VI 


DETERMINING QUALITIES 

The Importance of Ability to Judge Quality. The 

quality of a commodity is the characteristic which dis¬ 
tinguishes it from others of a class. Much of a buyer’s 
success must depend upon his ability to recognize quality. 
He is not capable of comparing merchandise intelligently 
unless he is a competent judge of the various degrees of 
excellence. The manufacturer knows his goods from every 
standpoint. The buyer must be no less well posted as to 
quality. He must possess, in addition, a knowledge of how 
goods are manufactured, the cost of production, and raw 
materials, market conditions, and many other factors affect¬ 
ing quality. 

Since each buyer’s establishment caters to a definite char¬ 
acter of trade, the policy of the house must determine what 
quality of merchandise is to be handled. For example, a 
certain department store in one of the larger Southern cities 
caters to the colored population and the humbler classes of 
white people. It follows that all merchandise bought must 
be selected with the idea of meeting the tastes and require¬ 
ments of this trade. The higher qualities of merchandise, 
or more conservative stjdes and patterns, would not sell. 
Naturally, there are other stores in the same locality cater¬ 
ing to the higher classes of trade. 

Textiles. The study of textiles and the tests for the 
various fibers is important both for the store buyer and the 

67 


RETAIL BUYING 


salesman, and serves as the best example of the thorough¬ 
ness with which a buyer should study the methods of testing 
for quality. The advancing costs of raw materials and 
manufacturing have had a tendency to cause more substitu¬ 
tion than ever before. Many treated cottons are sold as linen; 
and much cotton, especially the Peruvian cotton, which feels 
and looks like wool, has been mixed wdth the wool fibers and 
sold as an all-wool material. The buyer should be familiar 
with the construction of the various fibers as well as with the 
different qualities of the textiles, and understand thoroughly 
the simple tests used in distinguishing one from another. 

There are two classes of textile fibers, vegetable fibers 
and animal fibers. Wool and silk are animal fibers, while the 
vegetable fibers are composed of cotton, flax, hemp, jute, 
ramie, China grass, and many others. Each of these fibers, 
having its own peculiar characteristics, may be readily de¬ 
tected upon careful examination. In many cases a small 
magnifying-glass, called a linen-tester, is the only means 
necessary to make a test. 

Cotton. Cotton is commonly used for imitating other 
more expensive vegetable fibers. It appears, when observed 
through a glass, like a wide, flattened ribbon, and is composed 
mainly of cellulose. The fiber can stand a very high tempera¬ 
ture without decomposition, but burns with a flame when 
ignited, gives off little odor, and leaves a gray ash. 

Wool. Wool is composed of carbon, oxygen, and nitrogen. 
Under a glass it appears as a compact uniform rod, overlaid 
with scales, which appear to be set one into another, very 
much like the scales of a snake. Some of these scales are 
smooth and lie flat, as in mohair, where few serrations appear; 
while others are noticeably rough. The wool fiber burns 
slowly, with a dull flame, or merely melts together, leaving 
a bulb of hard brown ash, giving off a very disagreeable 
odor similar to the burning of hair. 

68 


DETERMINING QUALITIES 

Cotton. As it is the most inexpensive, cotton is the prin¬ 
cipal fiber used in combination with wool. Should either 
the burning test, which is a simple chemical test, or the ex¬ 
amination of the fibers under a glass fail to prove the origin 
of the fiber, there are several other chemical tests which 
may be employed. One of the simplest of these, and one 
of the most commonly used, is what is known as the “boiling- 
out” test. A solution, consisting of one ounce of caustic 
soda dissolved in a pint of water is prepared, and a sample 
of the material is boiled in this for fifteen minutes. The wool 
will dissolve, while the cotton part remains in a slightly 
yellowish state. Treated with cold sulphuric acid, it is found 
that the cotton will dissolve while the wool remains intact. 

Silk. This is the most valuable of all fibers, and conse¬ 
quently it is the most imitated. Many processes have beer 
invented to preserve the appearance in imitation and tc 
cheapen the product. The pure silk appears as a smooth 
cylinder, hollow in its construction, usually appearing as 
two distinct threads. Artificial silks, made of cotton, wood 
pulp, and other vegetable fibers, and wild and weighted silks, 
are used as substitutes for the pure-thread silk. The arti¬ 
ficial silks, being composed of cellulose, are easily distin¬ 
guished from the animal fiber. The pure-silk fiber burns 
like wool, seeming to melt slowly, giving off a disagreeable 
odor, while the vegetable fiber burns like cotton, more rapidly, 
leaving no odor. Weighted silks give off more ash, and the 
entire thread retains its shape, and when heavily adulter¬ 
ated it glows red until shaken or crushed. Artificial silk, 
when exposed to moisture, becomes weak and is easily pulled 
apart, while pure silk remains strong. Another test is to 
take several strands of yarn and chew them thoroughly. 
The artificial silk will be reduced to a pulp, while the pure 
silk will retain its original formation. The magnifying-glass 
shows the pure-silk threads twisted, while the artificial is 

69 


RETAIL BUYING 


shown to consist of a number of parallel strands. The luster 
of the artificial silk is much higher than the pure silk. 

The acid tests may be used to good advantage in distin¬ 
guishing the fibers. Nitric acid , will turn silk yellow very 
quickly and dissolve it in a short time, but will not stain or 
damage cotton. A 2-per-cent, solution of caustic soda will 
dissolve silk, while cotton or artificial silk remains unaffected. 

Silk and Wool. These two textiles are very often mixed in 
novelty material. The “ linen-tester ” furnishes excellent means 
of distinguishing the presence of either. However, as both are 
animal fibers, the simple tests are not sufficient to tell the rela¬ 
tive amount of each. A solution of zinc chloride, to which a 
small quantity of zinc oxide is added, will dissolve entirely the 
silk and only part of the wool. This will determine the forma¬ 
tion of the textile and show the proportion of each fiber. 

Linen. Flax thread, from which linen is spun, is a vege¬ 
table fiber. It appears jointed, like a cornstalk, with cross¬ 
marks showing on the fiber and no natural twist found. It 
is lustrous and oily, being much stronger than the cotton. 
Cotton cloth tears easily, with a muffled sound, while more 
force is required to tear linen of equal thickness, and the 
tearing gives off a shrill sound. The edges of torn cotton 
show short, curly ends, as does a cotton thread when pulled; 
the edges of the linen appear straight and outstretched. 

Linen is much heavier than cotton, bulk for bulk, and it 
has a cold, leathery feel which is absent with cotton. The 
cotton retains the heat much longer than the linen. By 
holding a cotton cloth to the light it will be noted that the 
weave is quite uniform, while the threads of the linen are very 
uneven and streaked. A drop of oil touched to linen which 
is free from dressing will appear almost transparent when 
held to the light, while cotton remains less so. 

If further tests are necessary it will be found that linen 
will stand the test of sulphuric acid much better than cotton. 

70 


DETERMINING QUALITIES 

A sample of the material, after having been washed care¬ 
fully to remove any dressing, is dipped in concentrated sul¬ 
phuric acid. After a two-minute submersion, if the sample 
is dried on filtered paper, it will be found that the cotton 
has dissolved in the acid and the linen remains. By weighing 
the sample, both before and after, the exact proportion of 
each may be discovered. 

Mercerized Cotton. The mercerized finish is produced 
through a treatment of caustic soda. It is sometimes sold 
as artificial silk because of the similarity. The manufact¬ 
uring processes of the two products are altogether different. 
The solution of caustic soda used in mercerized cotton 
would dissolve artificial silk. The simplest test is to wet the 
fibers; artificial silk will lose most of its strength, while 
mercerized cotton will not be affected by the moisture. 

Quality of Fiber. The strength and quality of a fiber 
may be determined by unraveling yarn drawn from a fabric. 
Long, healthy fibers are, of course, much stronger than 
shortened and weakened ones. Cotton fibers range from 
three-quarters of an inch to one and three-quarters; wool 
fibers may vary one to three inches in length; linen about 
eighteen inches; and silk in one continuous thread, as when¬ 
ever one cocoon thread breaks (in the reeling) or becomes 
exhausted, another is twisted around the end of the running- 
thread and it becomes a component. After pulling a few 
threads in each direction (both the warp and woof), and mak¬ 
ing an examination of these under the glass, it is possible to 
determine not only the character of the fiber and the quality 
of the yarn, but also the actual weave. 

Quality of Yarns. Cloths may be made from either one-, 
two-, or three-ply yarns (when two or more single yarns are 
twisted together they make ply yarns). A ply yarn is more 
durable and stronger than either the single yarn or the carded 
yarns. Long fibers are combed and made up into worsted 

71 


RETAIL BUYING 


yarns. The fibers lie parallel. The shorter fibers are carded 
and are used in making woolens. The fibers run in every di¬ 
rection. These same weaves may be noted in both the cotton 
and the silk. It stands to reason that the highest grade silks 
are made, from several strands of cocoon silk which have been 
combed out parallel, and the poorest qualities from the waste 
and short strands in the same manner as the woolen. 

Quality of Fabric. The closeness and firmness of the 
weave, as well as the quality of yarn used, denote the quality 
of the fabric. Weightings and fillings, such as starch, can 
be added so as to make the material appear heavier, but at 
the same time they cheapen the quality. Holding the fabric 
to the light, or rubbing it together, will soon show whether 
weighting or filling has been used. Tearing will cause dust to 
fly from the weighted materials. The firmness may be ascer¬ 
tained by pulling the thumb and forefinger down the weave. 

“ Counts.” One of the tests of the quality of a piece 
of material is made by counting the threads per inch under 
a magnifying-glass. This is specially applicable to domestics, 
percales, ginghams, and other similar material. In general, 
the higher the “count” the better the quality and the more 
durable the material. 

As an illustration the following figures will give an esti¬ 
mate of the average “counts” found in various materials: 


Nainsook. 80x104 

Persian lawn. 120x132 

Percale. 68x80 

Apron gingham. ' 48x56 

Gingham. 80x84 

Cotton pongee. 80x96 

Domestics. 76x84 

Cotton sheeting. 68x80 

Handkerchief linen. 84x84 

Unbleached embroidery linen. 28x28 

Table damask. 60x72 


72 













DETERMINING QUALITIES 


These figures have been obtained through the actual count 
of various qualities of stock material, and will serve a buyer 
as a guide. Percales, for example, will run from 64x68 
(inexpensive grades) to 80x80 (better quality). 

Furs. Another good example of the methods of testing 
for quality, but by radically different methods, is found in 
connection with the buying of furs. The fur expert can 
pick up a piece of fur—before manufacturing—and tell the 
very region where the animal was trapped, and at what 
time of the year the trapping was done. The farther 
north the animal is trapped the heavier and thicker will 
be the quality of the hair and the lighter in weight will be 
the skin. A prime Southern-caught skin may be superior 
in color to a Northern pelt caught out of season, though 
no Southern skin at its best can compare with the North¬ 
ern caught in its prime. Western and Southwestern skunk 
skins are usually more brownish in color and coarser-haired 
than those from Northern districts. Most fur-bearing ani¬ 
mals live in holes in the ground, and when caught out of 
season (November 15th to January 15th) the animal either has 
not grown its winter coat or it has worn off most of the 
guard-hairs going in and out of its lair. The pelts trapped 
before the season have stiff and bristly hair and very little 
under-fur. 

Classes of Furs. Broadly speaking, furs may be divided 
into general classes. The first division distinguishes the 
texture of the fur, while the second distinguishes the treat¬ 
ment of finishing of the fur. 

Short-haired Furs. The short-haired furs are distin¬ 
guished in quality by the fullness (amount of hair per inch), 
depth and texture of the fur, and (with fur-bearing animals 
having guard-hair) the amount and quality of the guard- 
hair. Among these may be found the British Columbia 
mink, Northern mink, Japanese mink, otter, beaver, kolin- 

73 


RETAIL BUYING 


sky, Persian lamb, broad-tail, muskrat, and others. The 
lack of this under-fur is a serious fault with such skins as 
marmot, hare, seal, or Russian pony, because when turned 
in it frequently shows the pelt on the edges of a garment. 

Long-haired Furs. The long-haired furs may be judged 
according to quality, the length, the fullness, and the texture 
of the hair. Among these are found the lynx, cat-lynx, fox 
(American, cross, black, red, etc.), wolf, dog, raccoon, opos¬ 
sum, skunk, fisher, wolverine, bear, goat, stone-marten, and 
others. 

Dyed and Natural. The second division of furs may be 
classed as the dyed and the natural. The better qualities 
and more perfect skins are usually made up in their natural 
state; while the poorer qualities, less perfect skins, and off- 
colored skins may be dyed, in which case the entire skin is 
dipped in the dye; or blended, which is done by dipping 
only the hair in the dye; or topped, which means brushing 
the tips of the hair. The natural furs may be distinguished 
by the softness of the pelt, the texture of the hair, and tho 
color. 

Leather. The length of the pelt has much to do with 
the texture and quality of the fur. The fur with the strong 
leather usually has hair that is very delicate and which will 
wear off very easily; while the more tender the leather the 
more durable the hair. The defects in the dressing may also 
be detected in the leather. Stiff skins, lumpy pelts, or brittle 
spots are caused when the pelt is not properly dressed or 
has been caught out of season. Frequently skins such as 
beaver are dressed so as to leave some fat on the pelt. This 
fat is cooked in the sun or drier, causing brittle places in the 
pelt. These brittle places are apt to break as soon as the fur 
is put into use. 

To a great extent nature endeavors to protect animals by 
giving to the skins the color of their surroundings. The 

74 


DETERMINING QUALITIES 

Russian ermine’s summer coat is an agreeable brown, which 
changes to snowy-white in winter. The stone-marten is 
usually caught in stony, rocky localities. The leopard takes 
on the spots of light and shade of the trees among which it 
lives, while mink caught in the heavily timbered or swampy 
country is naturally darker in color than that caught in 
more open country. An otter, caught in the swamps of the 
Southern States, may have beautiful coloring, though its pelt 
naturally would not be so fully furred as one caught in the 
colder climate of the north. 

Mink. This valuable fur is found in most parts of North 
America, and, owing to its splendid wearing qualities and 
rich-brown color, makes a desirable fur for the woman who 
wishes a rich effect in furs which will give long service. The 
mink is divided into four different grades, namely, Southern, 
Central, Eastern, and Northern. Southern skins are quite 
flat, not of good color, and quite stiff and coarse in hair. 
Central skins are much of the same order as the Southern, 
but they are slightly better in quality. Eastern skins are 
of a very fine quality, the pelts being quite small, but dark 
and rich in texture. While these skins are quite expensive, 
owing to the softness and silkiness of the fur, its wearing 
qualities are not quite so good as that of the Northern. The 
Northern skins are the ones more commonly used in this 
country. The pelts are quite large, of good color, very 
heavily furred, and excellent in wearing quality. 

All minks, regardless of species or locality, are graded into 
four qualities, from one, the best, to four. The grades are 
determined by the quality, weight, depth of hair, and color. 
The darker are the more expensive. The younger skins are 
softer and more valuable than the older. The closeness of 
texture, softness or pliability, and color give some idea as to 
the valuation. Many furriers gauge the thickness of the fur 
by blowing into the pelt. The number of blistering hairs 

75 


RETAIL BUYING 


is also used as a distinguishing mark. The mink has short- 
haired fur, and is usually seen in its natural state. During 
recent years, however, some few blended minks are being 
seen in the market. 

The number of skins used in the making must also be con¬ 
sidered in gauging the value. Clever cutters are capable of 
cutting one skin, dividing the strips, and matching it up so 
as to make it look like two skins. Frequently, four-skinned 
muffs have every appearance of six-skinned. 

Japanese Mink. The Japanese mink is a species found in 
Japan, Manchuria, and Korea. Being a pale yellow in the 
natural color, it is usually blended to a deep, rich brown, 
with a darker stripe (to imitate the American mink). While 
the original process of dyeing turned out a dark-finished 
skin, the new one turns out a much lighter skin, about the 
color of the Northern mink. The finishing and dyeing, of 
course, have as much to do with the quality as the texture 
and fullness of the hair. 

Muskrat. The muskrat is a short-haired fur, and may be 
seen in the natural, dyed, and blended. It is taken from the 
water-rat of the same name, found in the marshy places of 
this country. The fur is one of the most commonly used, 
being considered most satisfactory because of wearing quali¬ 
ties. It is used for small-piece furs, and for lining or trim¬ 
ming of wearing apparel for men and women. Below are 
found the principal kinds of muskrat, with their uses: 

j Used for the making of lower-grade 
\ coats and sets. 

j Used for making better grades of 
( natural muskrat sets and garments. 

( Used to make the better grades of 
( seal-dyed muskrat. 

76 


Northern 


Fall 


Winter 


Spring 


DETERMINING QUALITIES 

( Used for making better grades of 
•< natural Southern muskrat garments, 
( cheaper seal-dyed muskrat. 

( Used for making cheaper linings in 
| men’s coats and other garments. 

These may be further divided into the grades, poor, medium, 
good, and extra. The grades are determined by the general 
appearance of the pelts and fur, and by the weight of the 
hair or the amount of fur per square inch. 

Hudson Seal. Hudson seal, the principal substitute for 
Alaska seal, is a treated muskrat dyed. There are three 
distinct operations in the process of the treatment, namely, 
plucking, shearing, and dyeing, in the same manner as the 
real seal. The value of the Hudson seal depends almost en¬ 
tirely upon the skill used in the treating, the French process 
being superior to any other. In some cases the finished 
article is so like the genuine Alaska seal that even good judges 
are puzzled. 

The Hudson seal may be classed in the following grades: 
fair, medium, good, and extra, the grade depending upon the 
amount of fur per inch, or thickness, the general appear¬ 
ance, the color, and gloss, as well as the softness of the finished 
article. The under color, which may be determined by 
blowing into the fur, ranges from a reddish mahogany to a 
deep, rich brown, while the surface presents a rich, glossy 
black. The luster depends on the quality of fur, dyeing, 
and workmanship. 

Some unscrupulous workers make a practice of buying the 
clippings from skins used by the first-class houses and mak¬ 
ing them up into scarfs and muffs. These, of course, are 
much inferior to the pieces made from the larger skins. 
Some of the poorer qualities of Hudson show the pale color¬ 
ing at the root, while some few present a black appearance. 

77 


Southern 


Fall 

and 

Winter 


Spring 


RETAIL BUYING 

Others are very thin in hair and heavy in the leather proper¬ 
ties. 

Beaver. The beaver is a short-haired fur, usually seen 
in its natural state. As it comes from the animal the fur is 
one of the most unsightly used for fur purposes. This is due 
entirely to the long and coarse guard-hair it wears. After 
the guard-hair is plucked from the pelt, a very fine coating 
of under-fur is left, which is the beaver used for coats and 
sets. In very rare instances this fur is used unplucked. The 
better qualities, which are found in the Hudson Bay country, 
are of a dark, reddish-brown color, shading lighter toward 
the sides, with a dense, short, velvety fur. Unlike the land 
animals, the beaver pelt is better when trapped late in the 
winter. The amount of exercise in cold water has a tendency 
to put the fur in the best possible condition. The hair is 
slightly longer than the otter. Inferior skins are taken from 
Montana and North Dakota, the fur not being as heavy or 
as thick as the Hudson Bay, and a trifle lighter in color. 
More guard-hairs, which are plucked, are found with this 
species than with the Hudson Bay. 

The beaver is graded according to the amount of fur, the 
thickness, and the quality. The greasy appearance is no 
detriment to the quality, as it may be taken out by using 
hot sand or sawdust. 

Coney. The coney, a species of European rabbit, 
is one of the short-haired furs which may be seen in 
both the dyed and the natural state. It is the cheapest 
of fur used for fur purposes, and one of the poorest in 
wearing quality; although fairly strong in leather, it is 
not very durable in hair. The natural colors are white, 
gray, and mottled. 

The animal is a native of France, Belgium, and Australia, 
and is very similar to the American rabbit. The French 
coney has longer hair, sometimes being used to imitate the 

78 


DETERMINING QUALITIES 


lynx. It presents a silkier and more lustrous appearance 
than any of the others. 

The coney is divided into four grades, numbered first, 
second, third, and fourth, in order of quality. It may be 
graded by the quality and weight of the hair, the amount of 
fur per inch, as well as according to various ways of making 
and finishing. 

Near Seal and Electric Seal. The near seal, which is some¬ 
times sold for the more costly Hudson, and the electric seal, 
are made from the French and Belgian coneys. They are 
clipped and finished in the same way as the Hudson seal, and 
graded in the same way. The electric, however, is clipped 
longer than the near seal, but the same carefulness is not 
used in the matching. Consequently it is the less expensive. 

Raccoon. The best raccoon skins come from the colder 
sections of this country, such as Wisconsin, Michigan, and 
Illinois. This fur is used both in the natural and in the 
dyed, to imitate fisher, marten, and other long-haired furs. 
It is very durable and is used for practically all purposes. 

The raccoon furs are graded according to the section of the 
country from which they are taken, namely, Northern, Cen¬ 
tral, Southwestern, and Southern. The Northern fur, having 
a dense under-fur of deep and soft texture and a long, shaded 
guard-hair, is the best quality, and is used in the making of 
the better grade garments, scarfs, and muffs. The Central 
skin, the second in quality, possesses a good quality of hair. 
While not as heavy as the Northern, it has a very dark color. 
The Southwestern and Southern skins are of a rather shaggy 
type, the fur being thin and quite coarse, and the leather 
heavier and more firm. Thickness and depth of the fur, 
together with the quality, are excellent indications of the 
class to which it belongs. The best quality has the stronger 
contrast of light and dark tones. The better grades, in pale 

colors, are frequently dyed black or brown. 

79 


RETAIL BUYING 


Skunk. The skunk, usually sold as black marten, is used 
both in its natural state and dyed. It is one of the long¬ 
haired furs and is very durable. Northern skins are, of 
course, better, as the fur is much thicker and of a softer 
texture. The skunk, having two broad stripes of white down 
its back, in the raw skin is graded according to the absence 
of white. The less white the better the pelt. The better 
grades have long, fluffy, rich, lustrous fur, which is neither 
black nor brown, presenting a smoky appearance. In the 
finished pieces of this grade the two white parallel lines are 
cut out, leaving the skin of a uniform color. 

The inferior grades are usually dyed black or brown 
Either they are too coarse or shaggy in appearance (having 
been caught out of season) or possess too much white to 
permit the waste of cutting out. 

There are various grades of the skunk in its finished state. 
The better grade is indicated by length and quality of hair, 
and by color. The poorer qualities are thinner in fur and 
lack the texture or softness of the first quality. Practically 
all, however, have the guard-hairs which are so essential 
in the wearing qualities. A still poorer quality consist of the 
white fur which was cut out of the better skins, and which 
has been dyed and made up. 

Lynx. Lynx is a long-haired fur and is usually found 
dyed black, although it is sometimes sold in natural sets. 
It is one of the most perishable as well as one of the most 
costly of generally used furs. The finished lynx may be 
distinguished from the fox by the lack of dense under-fur, 
and by its natural silkiness and gloss, as well as by the pres¬ 
ence of the long belly hairs. 

In the natural state, the clear, dark skins, soft and long¬ 
haired in texture, are the better quality. Few of this quality 
are dyed. The inferior skins are dyed, as they do not have 
the appearance necessary for natural. The better quality 

80 


DETERMINING QUALITIES 


of the hair is found on the belly of the animal, this being 
much longer and silkier than any other. 

There are five to six grades of lynx on the market. The 
length, silkiness, and fullness of fur, together with the thin¬ 
ness of the pelt, denote the quality. 

Fox. This animal is a native of all the countries of the 
globe, but the American fox is the finest. There are numerous 
species of the fox, such as red, cross, gray, silver, natural 
black, natural blue, and white. The red is the more com¬ 
monly used, and from this are made, by dyeing, the black, 
taupe, pointed, “Isabella,” and others. White is also dyed 
into blue and other lighter colors. 

The fox is a long-haired fur and is finished in both the 
natural and dyed. It closely resembles the more expensive 
lynx, and is frequently mistaken. Fox skins are usually 
taped— i.e., small strips of leather sewed between alternately. 
These strips do not show, but increase the width of the fur 
and give it a more fluffy appearance. 

There are so many different species of fox, and so many 
qualities of each, that it will be impossible to define each 
in the given space. Practically all grades are judged in 
the same method as other long-haired furs. The finer, 
more silky texture, thicker-furred and thinner skins are 
Northern pelts and are more valuable. The better-marked 
and richer in color are used natural, while the off-colored 
are dyed. The size of the skins is also a factor in the 
valuation. 

The natural black fox is very rare. It is a very rich fur, 
and a single skin is worth from three hundred to fifteen 
hundred dollars. The dyed-black fox in the finished 
one-piece scarf is worth from ten to fifty dollars. The 
silver and blue fox are also rare and correspondingly ex¬ 
pensive. 

Wearing Quality of Furs. It is almost impossible to state 
6 81 


KETAIL BUYING 


just how long a piece of fur will wear, as no two skins of a 
given kind are exactly alike in texture; again, no two people 
will wear a fur in the same way. One woman may wear a 
Hudson-seal coat fifteen years, while another woman might 
have trouble making it wear more than two years. Generally 
speaking, furs in their natural color are stronger and more 
durable than those having been dyed. Below will be found 
a list showing, approximately, the wearing qualities and 
durability of the various furs. This list is compiled with 
otter as a basis, marked 100 per cent, in durability. Wolf is 
one-half as durable as otter. Hudson seal is one-half as 
durable as wolf. 


Otter. 

Mink. 

Beaver. 

Skunk (natural). 

Opossum. 

Fitch. 

Skunk (dyed) . 

Raccoon. 

Persian lamb. 

Muskrat (natural). 

Badger... 

Wallaby. 

Civet cat. 

Alaska seal. 

Kolinsky. 

Wolf. 

Astrakhan. 

Red fox (other naturals) 

Pony. 

Lynx (coarser). 

Ermine. 

Hudson seal. 

Russian sable. 

Lynx (extra fine). 

Coney. 

Seal-dyed Coney. 


100 % 

85 % 

80 % 

75 % 

69 % 

67 % 

66 % 

65 % 

65 % 

65 % 

60 % 

55 % 

53 % 

50 % 

50 % 

50 % 

45 % 

40 % 

32 % 

30 % 

25 % 

25 % 

25 % 

20 % 

20 % 

19% 


82 




























DETERMINING QUALITIES 


Buying Furs. For buying purposes the fur department 
should be completely divorced from the textile ready-to- 
wear. A much higher percentage of value of labor enters 
into the make-up of furs than into cloth garments, which 
automatically increase in price as the season advances. 
Comparatively cheap labor early in the season becomes high 
priced later on. The best results can only be obtained 
from skilful workers, who naturally do their best work when 
not too badly rushed, and who have abundance of day¬ 
light to match properly the skins for quality and color. 
Furs should, therefore, always be bought early enough to 
permit manufacturing before the rush fall season com¬ 
mences. This, of course, may not be possible in every 
case, as some of the extreme novelties may not be pro¬ 
duced until later in the season. Change of style in 
ladies’ cloth garments may have a bearing also on what 
will be worn in furs, but the more staple numbers, 
articles that every fur department is sure to require, 
should be ordered in ample time to give the manufact¬ 
urer an opportunity of putting into them his most skil¬ 
ful labor. 

Almost equally important is the necessity of buying furs 
of reputable houses, who will make good any article that 
proves defective, and who have the reputation for turning 
out reliable merchandise. As far as possible, it is wise to 
have a salesman wait on you who is conversant with the 
locality in which you are doing business. A salesman 
may be perfectly honest in his statement that the article 
he is showing has been a good seller, when that might not 
prove true in the locality where the merchant’s business 
is located. 

The buyer must always bear in mind that his customer 
in purchasing a single article will scrutinize and test it more 
carefully in the single piece than he has done. General ap- 

83 


RETAIL BUYING 

pearance appeals to him, while details count for more in the 
sale to the customer. Good designers’, pattern-cutters’, and 
skilful fur-workers’ services cannot be bought cheaply, and 
whenever anything of unusual value is offered “there’s a 
reason.” 

Groceries. In buying, the retail grocer either is called 
upon to stock advertised package brands or to make his selec¬ 
tion of such bulk goods, including fruits or vegetables, as 
the market affords. The old days are past when he selected 
most merchandise by sample, needing a fine understanding 
as to quality. In its place a simple laying in of those brands 
demanded by the consumer has replaced the old system. 
This change has in a great measure added to the cost of 
commodities. However, this is not necessarily so to an un¬ 
economical degree, for the average retailer has developed 
from the inexperienced ranks, and, therefore, is not a per¬ 
son that would be able to make a selection based upon 
knowledge. 

Aside from such fruits and vegetables as the market 
offers, his buying by selection as to quality depends only 
upon a few lines of bulk goods, such as cereals, rice, barley, 
tapioca, etc. And even these are continually being added to 
the brand lines until in the near future all goods handled 
will merely be designated by label. 

Some of the lines that used to test the retailer’s intelligence 
most, such as coffee, tea, butter, and eggs, are now also 
added to the brand list, and to-day he merely sells such 
brands of can or package coffee and tea as demanded. 
The advertised brick-butter and carton eggs replacing bulk 
goods. 

Coffee and Tea. The merchant who wishes to select 
bulk coffees and teas upon quality must positively be able 
to select them for their cup values, their general appearance, 
and later their acknowledged satisfaction given the con- 

84 


DETERMINING QUALITIES 


sumer. It is peremptory in the handling of coffees that 
stocks shall be renewed as often as possible to avoid the 
beans from becoming tough, for the sooner the coffee is 
ground and consumed after the bean is roasted the greater 
the satisfaction given. Contrarily, teas may be stocked for 
an indefinite time; however, both coffee and tea must 
be stored in containers that are free from contamination 
with foreign odors, especially soap, cheese, herring, and 
kerosene. 

Since the qualities of goods are generally determined by 
the palatable satisfaction given, a good buyer must have 
a fine sense of taste because it demands a keen judgment 
to tell the difference between various grades. The tastes of 
various communities differ upon these commodities; one 
class will demand strong coffees and teas, while others may 
desire just the opposite. The same applies to butter, 
cheese, and similar products. 

Fresh Fruits. These are tested entirely by appearance 
and lusciousness, adding thereto a third quality, that of 
the keeping quality. Fresh vegetables are generally judged 
by their appearance and quality for cooking. 

Canned Goods. Almost all canned goods that are in 
general demand consist of advertised brands, yet there still 
remains an avenue for a discriminating buyer to select quali¬ 
ties which he may offer his trade at a more advantageous 
price, side by side with well-advertised brands. Canned goods 
in general offer a guarantee of sanitary production (as well as 
comparative quality), for unless packed properly they will 
not keep, while those packed in the modern sanitary way 
will keep indefinitely. Canned fruit and vegetables which 
had passed through a fire twenty years after their date of 
packing showed, upon cutting (although the labels had been 
singed), no deterioration whatever. 

Canned Fruits. These are mainly judged as to size, 
85 


RETAIL BUYING 


mellowness, flavor, color of fruit, and consistency of syrup. 
Should they lack these qualities they are of a lower trade 
value. 

Canned Vegetables. The various kinds of canned vege¬ 
tables are judged as to tenderness, flavor, color, and clearness 
of liquor. 

Com. This should be of uniform kernel, sweet, and free 
from foreign substances, such as cob-particles added by 
close cutting. 

Tomatoes. Their value is determined by size, solidity, 
and color, which, in other words, would determine their 
ripeness. 

Peas. Peas are graded as to size, tenderness, flavor, and 
clearness of liquid. The smaller varieties are of the highest 
grade. 

Baked Beans. These are valued for flavor and tender¬ 
ness. 

String-beans. String-beans of good quality should be 
tender, free of strings, and uniformly small. 

Canned Fish. These, such as salmon, are valued for 
color, flavor, and oily consistency of the liquor. 

Dried Fruits. Dried fruits, such as prunes, peaches, 
apricots, etc., must show size and flavor. 

Cereals. Rice is selected upon size of kernel, color, and 
cooking quality. 

The following table is inserted to show that flavor and 
size are main determining values of food products. 

86 


DETERMINING QUALITIES 


Flavor 

Color 

Size 

Mellow¬ 

ness 

Quality 

of 

Liquid 

Cooking 

Value 

Butter 

X 

X 





Cheese 

X 

X 


X 



Coffee 

X 


X 



X 

Dried fruits 

X 


X 



X 

Fish, Canned Salmon 

X 

X 


X 

X 


Fruit, canned 

X 


X 

X 

X 


Fruit, fresh 

X 


X 

X 



Rice 



X 



X 

Tea 

X 

X 




X 

Vegetables, Canned Corn 

X 


X 


X 


Baked Beans 

X 


X 




“ String-beans 

X 


X 




“ Peas 

X 


X 


X 


“ Tomatoes 

X 


X 


X 



These are the most important exceptions, for, as stated 
above, the average commodities handled by the grocer of 
to-day are of advertised reputation in the purchase of which 
the retailer has no selection. This is evident regarding 
baking-powder, breakfast foods, flour, condiments, choco¬ 
late, cocoa extracts, sardines, and a multitude of other com¬ 
modities for which there is a general demand. Even in the 

87 





















RETAIL BUYING 


various lines of sundry goods, such as brooms, brushes, 
blacking, etc., some established brands are the acknowledged 
sellers. 

The advent of package goods marks an evolution of the 
grocery business. The character of average grocery-stores 
has become more that of specialized venders of foods, be¬ 
cause many of the sundry goods, such as clothes-baskets, 
wash-tubs, clothes-pins, clothes-lines, etc., are gradually 
being dropped from the regular grocer’s list and are now 
being sold by variety or department stores. 

Tests for Other Lines. In a similar way tests for qualities 
are made in other lines of merchandise. It is obviously im¬ 
possible to outline the standards and tests for every kind of 
goods, and accordingly these three, textiles, furs, and groceries, 
are given as representative. Similar data on every type of 
merchandise can be obtained, though not always readily or 
in published form. 


VII 


BUYING FOR SPECIAL SALES AND HOLIDAYS 

The finding and buying of special merchandise for sales 
is one of the most difficult problems which confront a buyer. 
A full knowledge of market conditions and merchandise 
values must be had in order that he may realize when he is 
picking up suitable merchandise correctly priced. Any 
ordinary clerk could pick- good values, a bit out of style, 
under price, if the manufacturer or distributer were anxious 
enough to rid himself of it; or buy good merchandise and 
pay too high a price for it. But the good buyer must find 
the special values and not get “stickers.” 

Clubbing the Salesman. A well-known writer, author of a 
book on merchandizing, gives his idea of buying for special 
sales: “It is just as easy to get some concession on every 
order turned over to a salesman as it is to give an order to 
every salesman who shows Jjjs merchandise. Look the line 
through, pick out what is wanted and have the salesman 
make out the order—so that there can be no chance of his 
attempting to change the quoted price. Then put a straight 
proposition to him by explaining that some special mer¬ 
chandise must be had for some special sale which is to be 
offered at a certain time. If he expects to have your signa¬ 
ture on the order, he must also take your order for an addi¬ 
tional two hundred SI.35 wash-boilers at 90 cents, and five 
hundred pieces of the 32 - cent graniteware at 22 cents. 
This special order is not to have anything to do with the 

89 


RETAIL BUYING 


regular order, which is to be given at original quoted prices; 
it will also have nothing to do with future reorders. In 
other words, it is to be a donation, pure and simple, to help 
out with the coming season’s business. 

“Should there be any hesitancy on the part of the sales¬ 
man, simply let him understand that whoever gets the order 
will have to comply with this special request. Furthermore, 
the special merchandise. will have to be delivered before 
regular goods, and should it not arrive on time and not come 
up to sample the regular order is to be canceled.” 

The writer goes on to explain how this plan may be used 
with success on all salesmen visiting the house and what sur¬ 
prising possibilities are in the plan. He fails, however, to 
take into consideration that every salesman must call on these 
same buyers again, and that after his first encounter both 
he and his house will be familiar with this merchant’s way 
of doing business. Not only that, but this salesman will tell 
representatives of other houses what kind of a buyer they 
will have to deal with when they call on this merchant. 
Prices will be boosted so as to allow for the necessary cut, 
and all salesmen will delight in taking advantage of such a 
buyer. The plan might work if the merchant could find a 
new house to do business with each time he needed mer¬ 
chandise, and if salesmen did not spread such information. 
This merchant would eventually pay the long price or close 
up shop. 

“Jobs.” Many articles have appeared in the various 
trade journals about the right and the wrong way of handling 
“jobs.” Some of the writers are of the opinion that all “jobs” 
are profitable; while others advocate letting them alone be¬ 
cause they are money-losers. The buying, however, will de¬ 
termine whether money is to be made or lost. It requires 
special study and forethought. 

First of all, a buyer must remember that all “jobs” cannot 
90 


BUYING FOR SPECIAL SALES 


be sold at the marked price. A portion is sold at the first 
marked price, and when the selling slows up the lot is reduced. 
Usually one-half of the special purchase sells at the first 
price, one-quarter at the second, one-eighth at the third, 
and one-eighth at the fourth price. In considering the 
“job,” the buyer should remember that 100 per cent, profit 
must be made on the entire lot. For example, a “job” of 
graniteware being considered, one-half of the lot will retail 
at 35 cents, one-quarter at 25 cents, one-eighth at 20 cents, 
and one-eighth at 15 cents, making an average retail price 
of 29 cents. This merchandise should not cost more than 
14J4 cents per piece. 

The next thing to consider is to make sure that the mer¬ 
chandise can be sold at the right time. There is a psycholog¬ 
ical moment for the offering of all lines. Hot-weather lines 
cannot be sold to the best advantage in winter weather, 
nor can winter goods be sold in the summer months. “Dead 
merchandise,” goods that are out of style, cannot be sold 
advantageously, regardless of how they are priced. For 
example, four years ago cotton ratines were unusually good. 
Many small buyers bought as many as ten pieces of a color 
to retail as high as $3 per yard. The following season this 
merchandise was “dead.” Manufacturers were willing to 
close out at any price. One merchant, because the price 
was low, bought twenty pieces priced at 32 cents per yard. 
But he failed to close the lot out at an average price of 
20 cents. 

Another necessary condition in the handling of “jobs” is 
to make sure that a sale is started with proper vim and “go.” 
The salespeople must be kept enthused to the highest pos¬ 
sible pitch, and the sale must not be allowed to drag. Either 
put the merchandise out of the way for a while or cut the 
price so that the customer will be anxious to buy it. 

Finding “Jobs.” All manufacturers and jobbers have 
91 


RETAIL BUYING 


broken lines of merchandise which they want to unload. 
The shrewd buyer who is in the market for special-sale mer¬ 
chandise can pick up all kinds of suitable lines. For instance, 
a year ago a Wisconsin merchant wanted to find something 
to help build trade in his millinery department. During 
July several houses were found with broken lines of Panamas. 
One house sold ten dozen, all it had in stock, varying in 
price from $12 to $36 per dozen, at $10 a dozen. The 
merchant, having made a study of market conditions, knew 
that their season (wholesale) was practically over, and that 
attention was being given to fall merchandise. These hats 
were retailed at from $1.25 to $3.50, and twenty-five dozen 
were sold in about three weeks’ time. The customers re¬ 
ceived extraordinary values, and the merchant cashed in on 
his initiative and knowledge. 

This same buyer makes a practice of keeping a more com¬ 
plete stock of handkerchiefs, at a lower price, than any of 
his competitors. His method is to purchase complete lines, 
at regular prices, and take all the close-outs the salesmen 
can offer. Many lots of “irregulars,” fifty dozen to the lot, 
have been purchased at a time at a price low enough to 
justify their sale at a uniform price of 123^ cents. In the list 
there would be many handkerchiefs of 25-cent and 35-cent 
value, and all are marked according to actual relative 
value, so as to make the profit on the first lot sold. As 
soon as the sale begins to drag, all remaining goods are 
marked at prices that will insure sale. 

Broken lines may be found in ribbons, piece goods, staples, 
furniture, hardware, and all other lines. But, as a rule, 
they are only offered in quantities out of reach of the average 
small merchant. The jobbers and manufacturers, and their 
salesmen, strive to interest the larger customer with any 
special they may have to throw out, because it has a tendency 
to insure their business on regular lines. Some of the smaller 

92 


BUYING FOR SPECIAL SALES 


merchants, however, have found co-operative buying a suc¬ 
cessful way to handle specials and jobs. 

Sample Lines. Salesmen’s sample lines may be had at 
the close of the road season, which is about the middle of 
the retailer’s season, at from to 50 per cent, discount 
from the original wholesale price. Some of these lines are 
clean and well kept, being equally as good as fresh mer¬ 
chandise. Other lines, being slightly soiled, may be cleaned 
and brightened up. 

How Competitor Offers Same Material and Style of Gar¬ 
ment for Less Money. Frequently, especially in women’s 
tailored suits, after careful buying, it is found that a com¬ 
petitor has apparently the same garment to offer for less 
money. The buyer is at a loss to know just how it was done. 
Customers explain that the competitor’s material and style 
are identically the same, and that the garment is priced 
$7 to $10 less than the garment being shown. 

In all markets offering men’s, women’s, or children’s wear 
there are houses making a specialty of turning out a certain 
grade of work. The better houses turn out the best tailoring, 
and use the highest quality of findings and trimmings. 
Other houses may be equally as good on the workmanship, 
but the trimmings, findings, and linings are of inferior quality. 
Still another house may employ the cheapest kind of labor, 
turning out inferior work. In this way it may turn out a 
suit resembling the one turned out by the best house, 
although costing much less money. 

In every city or town there are merchants who make a 
practice of buying merchandise from cheaper manufacturers, 
and advertising that their merchandise is the same as that 
of their competitors in quality for less money. These 
merchants may appear to succeed in the deception. 
Their method of doing business is hazardous, however, 
for any merchant who is anxious to build a successful busi- 

93 


RETAIL BUYING 

ness and who expects his business to last any time in one 
location. 

Leaders for Clearance Sales. In holding clearance sales 
the most important consideration, next in importance 
to the actual procuring of the merchandise, is to deter¬ 
mine the reason why the sale is to be held. In order to 
advertise this reason, as well as to sweeten up a stock, 
some few leaders are usually purchased to mingle with the 
regular stock. 

These leaders may have been purchased as a “job” from 
some manufacturing company or jobbing-house, or they 
may have been purchased in a regular way. Many buyers 
make a practice of buying regular merchandise to use as 
leaders. The commodity is purchased in larger quantities, 
marked as close as possible, cutting the profit to the mini¬ 
mum. Some concerns make a practice of selling these leaders 
at actual loss to advertise the sale. Some of the larger 
city department stores select for these leaders some line of 
branded goods, because it gives to customers the assurance 
that a real sale is in progress. The result is that an in¬ 
creased volume of business is procured, much of the regular 
merchandise is moved, and many new friends and customers 
are made for the store. 

Monthly Concentration Sale. A merchant in southern 
Ohio features what he terms a “monthly concentration 
sale.” The first day of each month, usually three months 
ahead of the time appointed, the merchant and his sales¬ 
people meet, plan a sale to be carried on during the period 
in question and decide what commodity is to be pushed. 
As soon as the commodity has been selected the merchant 
begins feeling around for the right article at the right price. 
Samples are requested from numerous manufacturers, in 
order that a comparison for quality may be made and 

quantity prices are secured. The best value for the least 

94 


BUYING FOR SPECIAL SALES 


money is secured, and quantity prices, as well as all discounts, 
are taken advantage of. 

This merchant’s experience is that right buying is one-half 
of the success of the sale. By having samples submitted he 
is enabled to judge what is best suited for his trade and to 
select the best value. He knows that a big display makes for 
good advertising and gives the public confidence in the suc¬ 
cess of the sale. His method of marking the commodity at 
the least possible sale price makes it hard for his customers 
to resist buying and increases his volume of business ma¬ 
terially. The same method may be used in the buying of 
any kind of merchandise for different sales. 

Special Requests. A Chicago woman, who moved to Eau 
Claire, Wisconsin, recently went shopping for her first time in 
the city. She visited all the stores in search of a certain brand 
of embroidery floss she had been accustomed to using. Not 
one of the stores had the floss or offered to get it for her, 
with one exception. Here her name was taken and entered, 
together with the kind, color, and size of the floss desired, in 
the want-book. Six days later, when the article was re¬ 
ceived, the customer received a telephone-message announc¬ 
ing the fact. The customer spent six cents for floss and 
forty-five dollars in the ready-to-wear department. 

The want-book method offers the only systematic way 
to keep an up-to-date, complete stock. Each time a call is 
received for any commodity not in stock the salesperson 
should enter the want, together with all necessary informa¬ 
tion. Many stores make a practice of using the want-book 
system and holding each department down to the least pos¬ 
sible investment. Even the larger city department stores 
have found it impossible to do without the want-book in 
keeping stocks up to the standard. Stock-keepers, whose 
efforts are given mainly to reserve stocks, are instructed to 
enter all articles in want-books when the stock on hand 

95 


RETAIL BUYING 


reaches a certain minimum. This allows time for new stock 
to reach the store before the stock on hand is cleared out. 
Some stores go further by making use of the want-book in 
keeping a record of the number of lost sales during the day. 
The books are gathered from each department three times 
a week, and the buyer makes note of the merchandise 
wanted and the quantity desired. 

Holiday Buying. Christmas buying is usually done many 
months in advance. All lines are more complete at this time 
and merchandise is priced more advantageously. Stock- 
sheets for merchandise purchased the season before are 
usually used to furnish a guide for the amounts, adding enough 
only to take care of the estimated natural increase. 

The actual selection of holiday merchandise is handled 
much in the same way as the selection of regular merchan¬ 
dise. The buyer keeps in mind the fact that the Christmas 
spirit moves many people to buy merchandise that they 
would not think of purchasing during any other period of the 
year. The appearance of the merchandise is usually of more 
importance than its actual valuation. Care should be exer¬ 
cised to select merchandise which will appeal to the average 
shopper for holiday gifts, and particularly merchandise which 
will appeal to children, which will make them open their eyes 
with delight and fill them with a desire to possess. Every 
class of purchaser and all ages should be considered and kept 
in mind while the selecting is being done. 

Delivery should be made not later than November 10th, 
and all merchandise should be marked ready for stock as 
soon as possible. Plans should be drawn up as soon as mer¬ 
chandise has been selected. The Christmas opening should 
be held the Saturday after Thanksgiving. Every effort 
should be made from that time on to have the store present 
a different atmosphere and make it breathe the Christmas 
spirit. 

90 


BUYING TO MEET COMPETITION 


The Value of Competition. Most buyers have learned 
the truth in the old maxim, “Healthy competition is the 
life of business.” Because of it business methods during the 
past fifty years have been revolutionized. Where competi¬ 
tion is lacking there are apt to be lazy business methods. 
In the old days the storekeeper thought that price was the 
most important thing in his business. Competition, how¬ 
ever, has forced the merchant of to-day to realize that pro¬ 
gressive methods in buying and selling, and service to the 
customers, are of more importance than price, in many lines, 
and of equal importance in others. So important is the ques¬ 
tion of meeting competition that many of the larger stores 
maintain expensive departments for the sole purpose of 
keeping themselves posted with regard to what competitors 
are selling, and how the values given compare with their own 
merchandise. Such precautions may be taken by the smaller 
stores on a smaller scale. Newspapers give much informa¬ 
tion. The gossip of shoppers throws light on the subject. 
Windows may be watched and actual merchandise com¬ 
pared for value. The successful merchant should know what 
his competitor is doing at all times. The idea is not to under¬ 
sell the competitor, but to furnish equal values and to give 
better service for the same money. Few buyers can resist 
the temptation “to beat the other fellow” in values. But 
7 97 


RETAIL BUYING 

such a policy may lead to a cheapening of the merchandise, 
and it is extremely difficult to get back the better trade 
after handling cheaper grades. Again, such methods may 
easily bring on a “price war,” with the consequent loss in 
profits. 

“ Friend ” Competitor. The Retail Grocers’ Association 
of Fond du Lac, Wisconsin, which holds a regular bi-weekly 
business meeting in one or another of the member stores, 
makes it a point to discuss various business questions common 
to all. Modern business methods, and particularly the 
problems of buying, are discussed, for general improvement 
in methods helps each merchant individually. Each one 
realizes that friendly competition is the only kind to be 
tolerated, and that it must be built upon a basis of straight¬ 
forward dealing to each other. 

This idea of being mutually helpful may be contrasted 
with the situation in another town, not far distant, where 
there are some twelve or more merchants in the same line 
of business, who do everything possible to hurt one another. 
For example, recently a customer, after buying an overcoat 
of one merchant, went across the street to another clothier 
to get a cap, as the first merchant had none in stock to please 
him. The second clothier, on greeting the customer and 
finding what was desired, asked, “What did you pay for 
that coat you are wearing?” The customer replied that the 
coat cost fifteen dollars. Immediately the merchant said, 
“I could have given you the same coat at twelve dollars.” 
Very likely the competitor whose sale he was trying to spoil 
would have done the same to him. Not one of the merchants 
in town has a good word for a competitor, and as a result 
the whole retail situation is demoralized. 

These two illustrations are given to show the contrast 
between co-operation and cutthroat competition. In the 
one case, all retailers are banded together, each doing a 

98 


BUYING TO MEET COMPETITION 

profitable business. They suffer few losses through selling 
merchandise to “deadbeats,” and they all profit by the 
pooling of experience. In the other case, each merchant 
is trying to take a competitor’s business, spending so 
much time doing it that he has no time to build up his 
own business. 

“Knocking” reacts upon the person who does it. It is a 
recognized fact that a customer begins to lose confidence in 
a retailer who makes it a practice to run down his competi¬ 
tors. Curiosity may even induce them to see what the com¬ 
petitor has to offer. Competitors’ attacks in this way have 
become a form of free advertising for the one attacked, but 
where all are following the same policy demoralization of 
the whole trade is bound to result. 

Price-cutting Competition. The clothing trade in a cen¬ 
tral Wisconsin town was bothered a great deal not long since 
by price-cutting. One of the merchants of the town made a 
practice of running special sales weekly, and during these 
sales a considerable amount of merchandise was sold below 
actual cost. This was not old merchandise, but rather new 
goods bought direct from the manufacturer. The other 
clothiers held a meeting among themselves, trying to decide 
what steps to take to stop this undesirable competition. 
Finally they decided that whenever a sale was advertised 
each merchant would have each one of his salespeople, each 
member of his family, all his close friends, and any one he 
could rely upon to help him, buy the article offered for him 
in as large quantities as possible. Each merchant agreed 
then to place the entire purchase in his window, together 
with a card announcing what the articles were and their 
sale price, selling them for the same price as had been paid. 
It was soon found that the competing merchants were able 
to buy about one-half of the sale article, and they, in turn, 
were selling the commodity, at no actual expense, to show 

99 


RETAIL BUYING 


that they could sell equally as close as the cut-price merchant. 
The result was that the price-cutting merchant lost the real 
sale, wasted his advertising appropriation, obtained no pub¬ 
licity from the sale, and lost the difference between the actual 
cost and the sale price. He soon found it more profitable 
to mark his goods at a fair profit and to consider his com¬ 
petitors before attempting to ruin the trade in his com¬ 
munity. 

Meeting the Competition of the Large City. In every 
community there are people who feel they must make their 
purchases in a larger community than that in which they 
reside. Eau Claire has women who shop in Minneapolis. 
Minneapolis has people who do most of their shopping in 
Chicago. A considerable number of Chicago women do a 
large part of their buying in New York City. New York 
City has an exclusive class which shops each year abroad. 
The attraction of the large city usually spreads. Then, too, 
there is a certain fascination for women to shop in a larger 
city, where, of course, larger assortments may be found. 
Some women shop away from home in order that they may 
have exclusive styles, others because they believe the city 
stores quote lower prices. In the first instances, the home 
merchant deserves to lose the business if he does not buy a 
few exclusive styles to suit the better trade. 

If a merchant in a small city carries a fair stock of the 
better merchandise for a particular trade, and then loses a 
considerable amount of business through shopping in larger 
cities, there are several ways in which he may overcome the 
loss. For instance, one merchant recently found that the 
greater portion of his trade was being supplied with wearing 
apparel by a retailer in one of the larger near-by cities. Once 
during each season several representatives of the city house 
were sent with six large trunks to the smaller city, and the 
selections were made in the hotel sample-rooms. Instead of 

100 


BUYING TO MEET COMPETITION 


delivering the merchandise at the time, the outside merchant 
shipped it the following day. There was absolutely nothing 
illegal in the plan, but the shrewd home merchant found a 
way to stop the out-of-town man from getting the business. 
Each time the visiting representatives came to town one 
of his clerks found time to visit the sample-room, see just 
what people were doing the buying, get descriptions and 
quantities, if possible, of the garments bought, and any 
other valuable information. Then he went to work to dupli¬ 
cate the garment by sending in descriptions to various manu¬ 
facturers. In such a case several were bought and sold to 
the trade for the least possible price. The idea, of course, 
was to sell the garments to people such as servants, and es¬ 
pecially colored people, whom the exclusive customer did 
not care to have wearing them. Usually the garments 
bought from the supposedly exclusive out-of-town store 
would be discarded. 

It is easy to understand why the average rural customer 
believes that the city store sells merchandise for less money 
than a store in a smaller town if one will but study the ad¬ 
vertising of the large store. The city store can afford to 
engage high-salaried advertising men who are expert in 
presenting to the public the bargains which the store offers. 
The small store is not so well equipped to exploit its bar¬ 
gains. Yet every store has bargains to offer, and every 
store should let the public know about them in the best 
possible way. The publicity gained through such mer¬ 
chandizing is the most valuable to be had. It increases 
the volume of business and creates a good impression for the 
store. 

Chain-Store Competition. Notwithstanding the fact that 
the chain store has many advantages over the smaller re¬ 
tailer, there are many compensating advantages to the in¬ 
dependent retailer. The chain stores, as a rule, are pro- 

101 


RETAIL BUYING 


gressive and wide-awake, generally taking advantage of 
every opportunity, while the majority of small-town mer¬ 
chants are unprogressive and incompetent. They fail to 
study their business, and in many cases seem to think that 
all they have to do in order to become successful retailers 
is to put the goods on the shelf. 

When the chain store opens in a town the local retailer 
is forced to give more time to the business, and particularly 
to his buying methods. He must begin to study modern 
retail methods if he expects to cope successfully with his 
rival. If chain stores deserve no other credit, they are 
entitled to appreciation for the impetus they have given to 
retailing as a science. 

Among the natural advantages of the chain-store method 
probably the hardest to compete with is that resulting from 
their tremendous buying power. In many instances the 
chain either owns large plants which make merchandise ex¬ 
clusively for them or at least control their entire output. 
In other cases the chain store, at the beginning of the year, 
contracts with various manufacturing plants for a certain 
amount of goods to be used during the year. As this mer¬ 
chandise is needed it is shipped direct to the various stores 
a£ a considerable saving to both the manufacturer and the 
retailer. 

Before placing large orders for a chain of stores, samples 
of the commodity are sent out to the various stores, together 
with a blank on which a report of salability of the article 
is made and sent into the main office. Frequently small 
trial shipments are sent out and the merchandise placed on 
sale. 

The chain’s order will depend on the reports from the sale. 
Should a large order be placed, however, and the merchan¬ 
dise fail to move in any given locality, it is switched to a 
different section of the country to be disposed of. In this 

102 


BUYING TO MEET COMPETITION 


way there is no chance of overloading with a lot of unsalable 
merchandise. 

One of the strongest advertisements of the chain store 
lies in the fact that through its expert methods of stock- 
keeping it is very seldom out of any commodity which 
should be carried in stock, and yet carries only a small stock. 
It is not uncommon to go into any independent store and 
to be told, “We are just out.” Grocers have even been 
known to be out of certain grades of sugar, coffee, and other 
staples. The chain store anticipates the demand even on 
specialties, and then creates a desire through its displaying 
and pricing of the commodity. 

Advantage of Independent Over Chain Stores. Although 
the average expense of doing business for the chain store is 
less than for the independent, there are many corresponding 
advantages for the independent merchant, and one of the 
most important is in connection with the buying. The local 
merchant is always in contact with his customers and he 
knows their wants. The chain-store buyer is frequently 
far away from the locality where the merchandise is to 
be sold. The independent merchant may buy his goods 
in small quantities and take advantage of any special 
purchases at a moment’s notice. He may test out any 
commodity, and even go so far as to make use of it in 
his own home to make sure of its value and service-giving 
qualities. This advantage, coupled with the realization 
that he can himself use efficient chain-store methods, puts 
a merchant in the position where he can welcome chain- 
store competition. 

Mail-order Competition. The past few years have seen 
a rapid development of the mail-order business. Two 
hundred and fifty thousand mail-order catalogues, from 
various New York and Chicago companies, were distributed 
in Mobile, Alabama, alone in 1916. The number distrib- 

103 


RETAIL BUYING 


uted in other centers was probably in similar proportion. 
Thousands of sales must necessarily be effected in order to 
take care of the enormous expense of printing and distribut¬ 
ing these catalogues. Sears, Roebuck & Co. alone did a 
business of $146,000,000 in 1916. 

All this, and more, is known to merchants everywhere. 
Some frankly acknowledge mail-order competition. Others 
complain of the “illegitimate mail-order business” that is 
driving them to the wall. Notwithstanding these facts they 
make little effort to meet this competition, seemingly content 
to sit by, doing business just as it has been done for the last 
twenty years, and witnessing the increase in mail-order sales 
in the locality and the decrease in their own volume of 
business. 

As a matter of fact, there are many ways of competing 
successfully. Merchants do not realize that they themselves 
are responsible for the growth of the mail-order houses. In 
order to meet mail-order competition it is necessary to under¬ 
stand clearly why the public buy from the mail-order house 
instead of from his local store. It is simply because they 
receive a better price or better service. If the mail-order 
house can give better prices than the local store, it is because 
it can buy more closely, do business at a smaller expense, 
or be satisfied with a smaller profit. 

Buying Methods. In buying for a mail-order business 
the same principles are followed by all. With many of the 
larger commodities, such as furniture, stoves, trunks, and 
the like, the buyer goes into the market, finds a manufacturer 
who is willing to contract to furnish the desired quantity, 
according to specifications, at a certain price. Frequently 
cash is paid before a single article has been delivered, and the 
house may draw on the manufacturer for the commodity 
as it is needed and in the quantities desired. Some make it a 
practice to list commodities in the catalogue, with price and 

104 


BUYING TO MEET COMPETITION 

description, without stocking any of the goods. When orders 
are received from the consumer the mail-order house for¬ 
wards directions to the manufacturer to ship direct to the 
purchaser. In this way they save the expense of handling 
and storing the merchandise. Much of the merchandise for 
sale by mail is bought from manufacturing companies who 
have surplus stocks on hand which must be unloaded. In 
a certain instance a mail-order buyer is said to have ap¬ 
proached a manufacturer just before inventory with an 
offer of a small figure for several thousand dozen pens, the 
entire number on hand. The manufacturer refused the 
offer, but agreed to sell at a flat price a trifle higher than 
offered. After a little dickering the mail-order buyer split 
the difference between his offer and the manufacturer’s 
price. This was a much lower price than that at which a 
regular dealer could buy the merchandise. The manufacturer 
saved a considerable expense in handling a number of small 
orders sent in by dealers, and cleaned out his entire surplus 
stock at one stroke. The pens were not labeled with the 
manufacturer’s name, although they were the same quality 
and exactly the same styles as were sold through regular 
dealers and at regular prices. 

Large orders are valued assets to any manufacturer. 
Therefore many manufacturers are willing to sacrifice some 
profit to secure what they term “ additional business.” When 
a buyer comes in who can place such an order there is every 
chance that he will get the merchandise he is looking for 
at the right price. The big buyer with plenty of cash at his 
disposal may wait his chance for bargains, but eventually 
he picks them up from sources not available to the smaller 
dealer. There are some manufacturers, however, who will 
not sell their products in this way or give quantity prices. 
If a mail-order house is forced to handle these lines from 
houses which refuse them inside or quantity prices, they 

105 


RETAIL BUYING 


frequently run them as loss leaders, selling them without 
making a profit and actually losing money. 

In the case of one manufacturing company, it is said that, 
after selling a considerable quantity to a catalogue house, 
they found they could not continue to market their product 
through regular retailers, because retailers could not afford 
to meet the prices established by the catalogue house. When 
the sales-manager realized he had lost his market through 
regular retailers, he came back to the mail-order house and 
made arrangements with them to take over his entire product. 
Such buying methods give the mail-order house the advan¬ 
tage over the small local retailer. Large department stores 
and big users of merchandise have the same privilege and 
use it. 

Retailer’s Advantage Over the Mail-order House. In the 

first place, the retailer is on the ground, coming in direct 
contact with his trade from day to day, and being in a position 
to take advantage of sudden style changes and sudden op¬ 
portunities to get desired merchandise on short notice, where¬ 
as the mail-order house must plan its buying from six months 
to a year in advance. This is one of the most effective ad¬ 
vantages of the independent merchant. 

Next, his merchandise is where it may be handled by the 
customer, and, through the aid of efficient salespeople, a 
desire for the commodities may be created. This is an 
important consideration in connection with buying. The 
mail-order house must rely on interesting the prospective 
customer through pictures and descriptive matter in their 
catalogues. Should the sale in a local store terminate in 
dissatisfaction, an easy and quick adjustment may be made, 
as the purchaser may come in personal contact with the 
adjuster, while with the mail-order house it necessitates the 
trouble of repacking and reshipping, letter-writing, and a 
considerable delay must result. 

106 


BUYING TO MEET COMPETITION 


Again, it is possible to prove to the local trade that they 
may buy from the home store, and be as well suited and 
satisfied as if they had bought from the mail-order house. 
The retailer may order a shipment of merchandise, for com¬ 
parative purposes, from the catalogue houses, and display 
it with cards showing prices, quality, weight, time required 
to receive package, etc., at the same time making a display 
of merchandise out of the store to correspond with the mail¬ 
order merchandise. Comparative prices and qualities can 
readily be shown in a way to create a favorable impression 
for the local retailer. 

Two young men who jointly owned a store in a thickly 
populated mail-order section of Wisconsin decided to fight 
the mail-order people with their own methods. Catalogues 
were sent for, and merchandise was ordered, received, and 
studied in order that they might determine just what quali¬ 
ties to look for in the merchandise when placing orders. 
Large quantities of the same character of merchandise were 
bought, and when received it was displayed much after the 
fashion of the five-and-ten-cent chain-store display. The 
catalogues received from the various mail-order houses 
were displayed all through the store, so that the customers 
might have no trouble in making comparisons should they 
so desire. The customers soon found out that they could 
trade more profitably in their home store, and the merchants, 
in turn, gave better service. 

Another merchant tells of advising a customer, after the 
latter mentioned that he had always been well suited with 
merchandise ordered through the catalogue, to order the 
commodity from a catalogue house and have it brought 
direct to the store, so that it might be compared with one 
of the stock articles. The order was written in the store 
and mailed. After a wait of twenty days the article was 
received, heavily crated. It was brought to the store and 

107 


RETAIL BUYING 


opened. It had been jammed and jostled around so that it 
did not present the best appearance, while the stock com¬ 
modity had been thoroughly cleaned and brightened up for 
the test. The plan worked so well that the customer bought 
the stock article from the store, returning the mail-order 
article, and developed into a steady customer. 


IX 

DETERMINING PRICES AND PROFITS 

Profit. “What is the use of my figuring profit, mark-up, 
etc.? Prices in my line, both wholesale and retail, are de¬ 
termined, in most cases, by competition; and, in cases of 
branded and advertised lines, by the manufacturers.” The 
owner of a small Wisconsin grocery-store was explaining to 
a young traveling-man why it was impossible for him to 
make more than a living out of his business. The two men 
had entirely different ideas about business. The one, after 
forty-five years spent in the harness, had given up and de¬ 
cided to let fate steer his ship; the other, three years of 
business-training to his credit, knew that success in the re¬ 
tail business was only won through hard, persistent, and 
systematic work. 

The merchant of yesterday was well satisfied with 
a living and a small profit at the end of the year from his 
business. To-day, however, the successful merchant not 
only receives a salary for his time given to the business and 
a profit at the end of the year, but he receives interest on the 
money invested in the business. The rising cost of doing 
business has forced the modern merchant to a conscientious 
study of profit and turnover. Profit depends largely upon 
the buyer’s merchandizing knowledge; or, putting it another 
way, profit is what the consumer pays for the merchant’s 
or the buyer’s merchandizing knowledge. 

109 


RETAIL BUYING 


There is no standard by which a buyer may work in order 
to gauge his profits, because buyers differ in knowledge and 
ability. For example, buyer Jones has the ability to find 
out what new commodities are on the market, and his knowl¬ 
edge of the market gives him the opportunity of putting 
these articles in stock while they are new, thus enabling 
him to keep a clean, new, and up-to-date stock, and to sell 
the merchandise at the marked prices. 

“When grandfather kept store he didn’t know that he 
had such a thing in his possession as a cost of doing 
business; consequently it never kept him awake at 
night. But grandfather was able to ask and to get a 
nice fat profit on every sale. He had little or no com¬ 
petition, and it cost him about one - half as much to 
run his store as it would were he in business to-day. He 
paid his bills when they came due, pocketed what was 
left, and thought of the cost of doing business as a freak 
idea of a lot of college professors. 

“ But to-day the merchant who does business without ac¬ 
curate figures that show him all of his costs, and the relation 
they bear to the sales, is working under a serious handicap. 
He can never be sure that he is making the profit he is plan¬ 
ning on. He has no accurate idea of his business condition. 
He is guessing rather than knowing, and at least half of the 
time he is likely to guess wrong.” 1 

Figuring the cost of doing business is not difficult. In 
fact, it is simpler than it sounds. It is a question of keeping 
accurate records of every expense—rent, light, heat, salaries, 
supplies, delivery, and so on. Then the total expenses are 
figured for a certain time and compared with the total sales 
for the same time. 

Here are a few simple suggestions for the proper figuring 
1 Quoted from Nesco News , by permission. 

no 


DETERMINING PRICES AND PROFITS 


of expenses that are recommended by the National Associa¬ 
tion of Credit Men: 

1. Charge interest on the net amount of your total investment 

at the beginning of the business year, exclusive of real 
estate. 

2. Charge rental on all real estate or buildings owned by you and 

used in your business at a rate equal to that which you 
would receive if renting or leasing it to others. 

3. Charge in addition to what you paj^ for hired help an amount 

equal to what your services would be worth to others; also 
treat in like manner the services of any member of your 
family employed in the business and not already on the 
regular payroll. 

4. Charge depreciation on all goods carried over on which you 

may have to make a lower price because of changes in style 
damage, or any other cause. 

5. Charge depreciation on building, tools, fixtures, or anything 

else suffering from age, wear and tear. 

6. Charge amounts donated or subscriptions paid. 

7. Charge all expenses, such as taxes, insurance, water, light, 

fuel, etc. 

8. Charge all incidental expenses, such as drayage, postage, office 

supplies, livery, or expenses of horses and wagons, telegrams 
and telephone, advertising, canvassing, etc. 

9. Charge losses of every character, including goods stolen or 

sent out and not charged, allowances made customers, bad 
debts, etc. 

10. Charge collection expense. 

11. Charge any other expense not enumerated above. 

12. When you have ascertained what the sum of all the foregoing 

items amount to, prove it by your books, and you will have 
your total expense for the year; then divide this figure by 
the total of your sales, and it will show you the per cent, 
which it has cost you to do business. 

13. Take this per cent, and deduct it from the price of any article 

you have sold, then subtract from the remainder what it 
111 



RETAIL BUYING 


cost you (invoice price and freight), and the result will show 
your net profit or the loss on the article. 

14. Go over the selling prices of the various articles you handle 
see where you stand as to profits, then get busy in putting 
your selling figures on a profitable basis—and talk it over 
with your competitor as well. 

Know Your Costs. These suggestions show that there 
is but one safe plan in dealing with selling costs—know your 
own costs, know them inside and out, upside down and 
backward. Make it a point to know just as much about 
the costs of doing business as you know about the cost of 
the merchandise you sell. One very satisfying thing about 
the study of costs is the way in which it uncovers unneces¬ 
sary expenses. Often a merchant is able to save a fair sum 
of money by cutting out expenses that he never noticed until 
he got his cost figures down in black and white. But be sure 
to draw a sharp line between selling expense and waste. 
Cut out the waste, but do not economize by attempting to 
reduce expense necessary to the making of sales. The cash 
that goes to keep a neat, attractive store, an up-to-date stock, 
courteous and efficient clerks, to advertise your store and 
to keep accurate records of the business, is money well spent. 

In order to make a systematic study of profit it is obviously 
necessary to make a study of the expense, not only as we 
have previously done, but to compare percentages of other 
stores. The expense will vary, of course, because of local 
conditions, the size of the city, the amount of business done, 
the character of the trade, or the class of merchandise sold. 
Accountants have made a study of this specific subject, 
and many articles and statistics have been published. Promi¬ 
nent among them are the bulletins issued by the Bureau 
of Business Research, Harvard University. One of their 
bulletins entitled, Expenses in Operating Retail Grocery- 
stores, gives the following table of percentages: 

112 


DETERMINING PRICES AND PROFITS 


SUMMARY TABLE OF PERCENTAGES, AND OTHER 
FIGURES FOR RETAIL GROCERY-STORES 1 


ITEM 

(For Percentages, Net Sales - 100%) 

Low 

High 

Common 

Standards 
attained 
by a group 
of more 
efficient 
Stores 


% 

% 

% 

% 

Gross profit on merchandise... 
Salaries and wages of buying 

14.6 

27.9 

21.0 


force. 

0.1 

2.4 

0.5 


Other buying expense. 

0.0 

0.5 

0.02 


Total buying expense. 

0.1 

2.4 

0.5 


Salaries and wages of sales force 

3.5 

10.6 

6.5 

5.0 

Advertising. 

Wrappings and miscellaneous 

0.01 

1.8 

0.1 


selling expense. 

0.03 

1.4 

0.4 

0.3 

Total selling expense. 

4.5 

10.8 

7.0 

5.5 

Wages of delivery force. 

0.6 

3.5 

1.5 

1.0 

Other delivery expense . 

0.3 

3.4 

1.5 

1.0 

Total delivery expense. 

1.1 

5.9 

3.0 

2.5 

Management and office salaries 

0.3 

3.8 

1.5 


Office supplies and expense. . . 

0.01 

0.4 

0.1 


Total management expense. .. 

0.4 

4.0 

1.7 


Rent. 

0.3 

4.1 

1.3 

0.8 

Heat, light, and power. 

Insurance on stock and store 

0.1 

0.8 

0.2 

0.15 

equipment. 

0.03 

0.5 

0.1 


Taxes. 

Repairs and renewals of store 

0.01 

0.5 

0.1 


equipment. 

Depreciation of store equip- 

0.01 

1.4 

0.1 


ment. 

Total fixed charges and upkeep 

0.03 

0.9 

0.2 


expense. 

0.8 

5.6 

2.0 

1.5 

Telephone. 

0.04 

0.6 

0.2 



1 This summary includes stores which sell groceries, and also stores which sell both 
groceries and meats and provisions. Quoted by permission. 

8 113 























RETAIL BUYING 


ITEM 

(For Percentages, Net Sales - 100%) 

Low 

High 

Common 

Standards 

attained 
by a group 
of more 
efficient 
Stores 

Ice and cold storage: 

% 

% 

% 

% 

Groceries only. 

0.01 

0.6 

0.1 

0.1 

Groceries and meats and pro- 

visions. 

0.03 

0.7 

0.3 

0.2 

Other miscellaneous expense. . 

0.01 

1.2 

0.1 


Total miscellaneous expense .. 

0.1 

1.4 

0.5 

0.3 

Losses from bad debts. 

0.01 

2.2 

0.5 

0.2 

Total of expense statement. . . 

10.4 

25.2 

16.5 

13.0 

Net profit from merchandise 

operations. 

Loss 

3.3 

11.0 

2.5-5.5 


Interest. 

0.2 

1.7 

0.8 


Number of Stock-turns a year: 

Groceries only. 

3.5 

23.8 

7.0 

12.0 

Groceries and meats and pro- 

visions. 

7.0 

26.4 

9.0 

14.0 

Average annual sales per sales- 

person.$5,000 

$20,000 

$10,000 



Gross and Net Profit. In the management of a retail 
store it is essential that the buyer or the manager make note 
that there are two distinct kinds of profit—namely, gross 
profit and net profit. Gross profit represents the difference 
between the cost price and the selling price; while net profit 
represents what is left after all expenses of selling have been 
deducted. For instance, we sell a stove which cost $20 for 
$30. The gross profit made on this transaction is the differ¬ 
ence between $20 and $30, or $10. But the cost of doing 
business is 20 per cent. Therefore, our net profit amounts 
to the difference between the $20 and $30 minus 20 per 
cent, of the sale price, the cost of doing business, which 
gives us 10 minus 6, 20 per cent, of $30, or $4 net profit. 

Hart, Schaffner & Marks investigated and collected figures, 
showing cost and profit percentage, from retailers who handled 

11 * 













DETERMINING PRICES AND PROFITS 


their goods, for the purpose of assisting the dealer. The fig¬ 
ures have been analyzed and the averages shown as follows: 
AVERAGE PROFITS FROM CLOTHING-STORES 


Average gross profit. 29.1% 

Average net profit. 10.0% 

Average of discounts.. 3.3% 

Average gross profit when net profit is over 10%. 30.9% 

Average gross profit when net profit is under 10% . 27.8% 

Average net profit plus discounts. 13.1% 

Average cost of doing business. 19.0% 

Average rate of turnover (one inventory). 2.4% 


Cost or Selling Price. In order that figures of other stores 
or figures of previous years may be compared with expenses, 
profits, etc., it is essential that the totals be reduced to per¬ 
centages, and in order to arrive at any percentage it is neces¬ 
sary that some common base be decided upon. No merchant 
can derive any benefit through his work of comparing per¬ 
centages when he uses the cost one time as a basis and the 
sale price the next time. His comparisons will amount to 
naught and his labors will be worse than useless; that is, of 
course, if the results of one be compared to those of the other. 

There are a number of factors which determine whether 
the cost price or the sale price is used in profit computations, 
and it is perfectly true that either will serve if used in the 
right way. We are told that some progressive merchants, 
who thoroughly understand such matters, use both the cost 
and the sale price as a basis, although until recent years the 
cost price alone was used. 

Mr. Thomas A/ Fernley, in his book, The Right Way to 
Figure Profits, 1 advances the following twelve excellent 
reasons why the percentage of profit should be figured on 
the selling and not on the cost price: 

First .—Because the remuneration of salespeople is figured on a 
certain percentage of the selling price. 

1 Quoted by permission. 

115 










RETAIL BUYING 


Second. —Because the percentage of conducting business is based 
on the sale price. No capable business man would attempt to talk 
percentage of profit on the cost and per cent, of expense on the selling 
price. 

Third. —Because all taxation is based on the percentage of gross 
sales. 

Fourth. —Because the sales totals are always given in books of 
record—cost totals are seldom if ever used. 

Fifth. —Because a profit must be provided for the two items of 
capital—on the capital invested in merchandise—the other the 
capital necessary for operating expenses and other expenditures not 
properly chargeable to the merchandise account. This is only pos¬ 
sible by figuring profit on the selling price. 

Sixth. —Because it indicates correctly the amount of gross or net 
profit when the amount of sales is stated. The percentage of profit 
on the sales is indicative of character of results of the year’s busi¬ 
ness—percentage of profit on the cost is not. 

Seventh. —Because allowances in percentage to the customers are 
always based on the selling price. 

Eighth. —Because no profit is made until the saie is actually 
effected. 

Ninth. —Because nine stores in ten which do not figure on the 
selling price get mixed somewhere in their figures, and do not know 
whether or not they are going backward or forward. 

Tenth. —Because the chain-store fellows and the big-store fellows, 
who press the retailer the hardest, do figure on the selling price. 

Eleventh. —Because it puts you where a customer will not be likely 
to call you a robber if she learns that your percentage of profit is 
20 per cent, of the selling price (25 per cent, of the cost price). 

Twelfth. —Because, if you figure on the selling price, you can go to 
the cash drawer and say, “10 per cent, of that money is my profit,” 
instead of having to say, “ 10 per cent, of the cost of the goods which 
I sold for this money is my profit.” 

Figuring Profit. One hundred per cent, of anything is all 
of it. If Farmer Smith had a bushel of apples and gave 100 
per cent, of them to his son he would have none left. Conse¬ 
quently, 100 per cent, equals the sale price. Suppose this 
bushel of apples costs $1, the cost of doing business is 23 per 
cent, and a profit of 10 per cent, is desired. Then 100 per 

116 


DETERMINING PRICES AND PROFITS 

cent., minus 33 per cent., the cost of doing business, plus 
the desired profit, equals 67 per cent., or the cost of the 
apples. The cost of 1 per cent, is found by dividing 67 
into $1, the cost price of the apples, which equals .0149. 
One hundred per cent., or the sale price, is found by multi¬ 
plying .0149 by 100, and the sale price is found to be $1.49. 

Solution: 

Let 100% equal the sale price. 

23% plus 10% equals 33% the mark-up. 

100 minus 33% equals 67%, or cost price. 

1.00 divided by 67 equals .0149, or 1% of total sale price. 

100% equals 100x.0149 equals $1.49 sale price. 

Pricing Merchandise. The fundamental proposition at 
the basis of retailing, therefore, is the pricing of merchandise. 
The success of every retail business depends upon the ac¬ 
curacy with which this is done The antiquated method, 
taught the retailer by the jobber, of marking $2.25 per 
dozen merchandise 25 cents; $4.25 per dozen merchandise 
50 cents; $9 per dozen merchandise $1, etc., regardless 
of what the merchandise looked like, is rapidly being dis¬ 
carded, and is being replaced by the system of marking the 
merchandise at the price which it will bring and still be 
worth the money. Oftentimes a 75-cent commodity will 
bring a better price than an article costing $1. There is, 
of course, much difference between staples and novelties. 
The grocer would be hard put to it were he forced to sell 
delicate goods at the same margin of profit as sugar. He 
must make his profit through the sale of fancy groceries. 
The price must not be too high or the customers will not buy; 
it must not be too low or the business and those who compete 
with it will be destroyed. It must be just right, and to estab¬ 
lish this correct price we must rely on the percentage basis 
of the previous season’s business, as well as past experiences. 

This price of the commodity is not necessarily its value; 

117 


RETAIL BUYING 


it is merely a measure of its value. The supply and the 
demand are great factors in the pricing of the merchan¬ 
dise. For instance, before the beginning of the European 
war a certain grade of taffeta silk cost cents per yard, 
and sold for 95 cents. The season was not a good one for 
this particular kind of silk, and plain colors would not bring 
a better price. Some of the novelties, however, sold for $1.10. 
The fall season of 1916, being an excellent one for this type 
silk, brought a heavy demand. This fact, together with the 
dye scarcity, caused prices to soar. This same quality, sup¬ 
posedly, cost $1 and sold for $1.35. The quality was poorer 
because of the increase in the price of dye materials, and 
the silk was weighted more heavily. Because “Dame 
Fashion” favored this silk the manufacturer was able to 
ask a higher price (true, it cost more, in proportion, to manu¬ 
facture) , and the customer was willing to pay a higher price 
for an inferior grade. The customer’s want is great enough 
to cause her to pay the advance on the inferior article. 

The average percentage of profit is not found in order that 
all merchandise may be marked on that basis of gross profit, 
but merely in order that the merchant may use the figures 
as a guide in determining the selling price. Each commodity, 
with the exception of branded articles, which must be sold at a 
price fixed by the manufacturer, and articles of which the price 
is fixed by competition, should be examined and the price fixed 
according to what it will bring. The shrewd buyer will often 
buy merchandise of exceptional valuation. Frequently $4.50 
per dozen hosiery, which would have been sold, according to 
the old system of marking on the cost price, 50 cents, will be 
exceptional value at 60 cents per pair. The efficient mer- 
chandizer knows, too, that in order to make the necessary 
profit, he must mark a long profit on the slow sellers and a 
short profit on the swifter-selling commodities. 

Mark-up. When the buyer or retailer thinks of profit 
118 



































































































DETERMINING PRICES AND PROFITS 


he must necessarily think of the mark-up, as the mark-up 
is the sure gauge to the profit. He knows that the mer¬ 
chandise costs so much in the first place, the cost of doing 
business amounts to a certain percentage, a certain percent¬ 
age must be allowed for depreciation, and an additional 
percentage must be added for the profit expected. Hence 
the total percentage of the cost of doing business, percentage 
of depreciation, and percentage of profit expected must be 
the necessary mark-up. In other words, the mark-up is 
the difference between the cost and the selling price. 

Figuring Percentage of Mark-up. The percentage of 
mark-up is obtained by subtracting the cost price from the 
selling price and dividing the result by the selling price— i.e. y 
when the percentage on the selling price is required. How¬ 
ever, let it be noted that when cost percentages are desired 
the division is made on cost figures, and selling percentages 
on the selling figures. In other words, divide the result 
or difference between the cost and selling figures by the basis 
on which the percentage is desired. For example: The 
merchant buys a set of harness costing $16 and marks it to 
sell for $25. The difference between the cost and the selling 
price is $9, and to find the mark upon selling price, 9 is 
divided by 25, the selling price, and the result is 36 per cent. 
To find the mark-up on the cost price, 9 is divided by 16, 
the cost price, and the result is 5634 P er cent, mark-up on 
cost. 

The following chart shows a comparison of percentages 
based on the cost figures with those based on the selling. As 
a guide in establishing the prices at which the merchandise 
is to be sold, the buyers in some stores are furnished with 
these comparison cards. On these cards the relation between 
the per cent, of mark-up on the cost and the per cent, of mark¬ 
up on the retail is shown in the parallel vertical columns. On 
this we see that if we add for the profit an equal amount to 

119 


RETAIL BUYING 


25 per cent, of the cost we will realize a profit of only 20 per 
cent, of the sales figures if the goods are sold as originally 
marked. So, also: 

33 Yz% of the cost equals 25% of the retail. 

40% of the cost equals 28.57% of the retail. 

43% of the cost equals 30.07% of the retail. 

82% of the cost equals 45.05% of the retail. 

The following is a complete table of the ratios of per¬ 
centages of mark-up or cost to those on selling price: 


Cost 

Selling 

Cost 

Selling 

Cost 

Selling 

Cost Selling 

01 

00.99 

26 

20.63 

51 

33.77 

76 

43.18 

02 

01.96 

27 

21.26 

52 

34.21 

77 

43.50 

03 

02.91 

28 

21.88 

53 

34.64 

78 

43.82 

04 

03.84 

29 

22.48 

54 

35.06 

79 

44.13 

05 

04.76 

30 

23.07 

55 

35.48 

80 

44.44 

06 

05.66 

31 

23.66 

56 

35.90 

81 

44.75 

07 

06.54 

32 

24.24 

57 

36.31 

82 

45.05 

08 

07.40 

33 

25 

58 

36.71 

83 

45.35 

09 

08.25 

34 

25.37 

59 

37.11 

84 

45.65 

10 

09.09 

35 

25.92 

60 

37.50 

85 

45.94 

11 

09.90 

36 

26.47 

61 

37.89 

86 

46.23 

12 

10.71 

37 

27 

62 

38.27 

87 

46.52 

13 

11.50 

38 

27.54 

63 

38.65 

88 

46.80 

14 

12.28 

39 

28.06 

64 

39.02 

89 

47.08 

15 

13.04 

40 

28.57 

65 

39.39 

90 

47.36 

16 

13.79 

41 

29.08 

66 

39.76 

91 

47.64 

17 

14.52 

42 

29.57 

67 

40.11 

92 

47.91 

18 

15.25 

43 

30.07 

68 

40.46 

93 

48.18 

19 

15.96 

44 

30.55 

69 

40.82 

94 

48.45 

20 

16H 

45 

31.03 

70 

41.17 

95 

48.71 

21 

17.35 

46 

31.50 

71 

41.52 

96 

48.97 

22 

18.03 

47 

31.97 

72 

41.86 

97 

49.23 

23 

18.69 

48 

32.43 

73 

42.20 

98 

49.49 

24 

19.35 

49 

32.88 

74 

42.53 

99 

49.74 

25 

20 

50 

33^ 

75 

42.86 

100 

50 


120 



PART IV 


STOCK SYSTEMS 






THE TURNOVER 


Turnover. One of the most vital considerations in re¬ 
tailing is the turnover. This is especially true now owing 
to rising costs and keen competition. The average merchant 
does not realize that the greatest profit is to be made from 
the small stock and the quick sale. Instead of buying mer¬ 
chandise in small quantities, and buying frequently, they 
tie up their capital and lose profits unnecessarily. Profits 
are not made on left-overs, but on turnovers. Turnovers 
spell profits, while carry-overs spell losses. Overbuying, in 
a word, means underturning, and underturning means di¬ 
minished prestige, profit, and growth for the store. 

A certain Wisconsin merchant who is one of the old school, 
and conducts his business along the lines his father practised 
twenty years back, recently asked this question: “What is 
the use of limiting stocks when I have plenty of capital to 
put into them?” 

Finally he was persuaded to limit each department in 
the store, for a period of six months, to see what changes 
would take place. The result was that he cut a $120,000 
stock to $110,000, and did more business. Now this mer¬ 
chant is greatly interested in turnover; he realizes that he 
is making a far better profit and doing more business with 
a much cleaner stock of merchandise. 

A striking evidence of the advantage of effective stock 
123 


RETAIL BUYING 


turnover is to be found in the example of the United Cigai 
Stores Company’s success. It is said that before this con¬ 
cern will choose a location for a new store it is customary 
to station men in close proximity to the proposed location, 
who take an actual physical count of the men who will 
pass within a given space of time. The figure gives them the 
number of possible customers the store can hope to appeal 
to with its wares. Of course, not every man who passes is 
a smoker. They know what portion of all men smoke, and 
when the total number of passers-by reaches this figure, 
which their experience tells them would make it possible to 
establish a paying store in that vicinity, a new one is opened. 
Contrary, however, to the practice of the department store, 
instead of locating at the point of greatest traffic and build¬ 
ing a mammoth store to bring the largest possible return, 
they choose the busiest spots and open a store of small 
dimensions. 

The United Cigar Stores’ business is profitable because 
they have developed, to what is perhaps a greater efficiency 
than any other line of business, the principle of quick and 
constant stock turnover, and this, too, in a business where 
every item of stock carried may be said to be a staple com¬ 
modity. The buyer in other lines of goods can perhaps see 
no connection between his interests and the interests of the 
cigar merchant. The experience of the small cigar-store is 
one which the average buyer may well consider, however. 
If the ratio of profit in the tobacco business is based on the 
frequency of stock turnover, the same principle applies to 
other kinds of stocks. More money is made in actual profit 
by speedy turnover of stock than is made in a slow-turning 
business of higher gross sales. To illustrate this, a store 
doing an annual business of $100,000 on a capital of $33,000 
might be considered a staple proposition if it could show a 
net profit of 10 per cent, on the amount of business repre- 

124 


THE TURNOVER 

sented. This would, in reality, be a profit of 28J^ per cent, 
on capital invested. But if the merchant could increase his 
business to $200,000 with the same capital, he is making 
57 per cent, profit on his capital. 

A hardware merchant in a small town remarked that it 
was impossible to make any kind of stock-turn in the hard¬ 
ware business, because there were so many lines to be pur¬ 
chased in bulk, where there was practically no profit to be 
made. True, the merchant buys this way, but it is not 
necessary that he should. Take, for instance, the reserve 
kegs, of nails kept under the counters. Some of them stay 
there three years, waiting for the customer who is in a hurry 
for a full keg of nails. They may be kept five years, or ten 
years. The capital tied up, the amount of space that these 
nails occupy, and the possible demand must be considered. 
Money may be made by selling nails, but the stocks must 
be watched and turned often. Consider the small profits to 
be made in the grocery business. Nails net equally as much 
profit as some lines of groceries, but they do not sell as 
readily. The successful grocer watches and works his slow- 
moving lines, because he knows it is not the amount of 
capital he has in his business but how hard he works this 
capital that counts. 

The larger department store is forced to recognize its 
smaller competitor whose turnover is more rapid. In some 
cases the smaller store is drawing trade away from the big 
one because it is watching details with greater energy, its 
stock is smaller and cleaner, and the merchandise is sold 
for less money. By buying the merchandise in small quan¬ 
tities these stores are never forced to sell something that the 
customer does not want. The manufacturers and the job¬ 
bers are being forced to carry the load. The merchant can 
order merchandise, in most lines, as he needs it. 

Suppose a merchant, with an average expense of 20 per 

125 


RETAIL BUYING 


cent., buys five portable houses, to be sold at $2,000 each, 
costing $1,000 each. Should he sell all of these within the 
first year, he will make a net profit of $3,000. But should 
he fail to sell all of these houses within the year, this net 
profit will diminish in proportion to the time required to sell 
them; the houses will also decrease in valuation yearly. On 
the other hand, should this merchant have invested $5,000 
in millinery or groceries, the expense of selling remaining 
at 20 per cent., and if he sold this lot of merchandise for 
$7,000, a net profit of $600 would be realized on the trans¬ 
action. If he had the ability to turn this stock ten times 
per year he would make a net profit of $6,000. In the first 
instance a great gross profit was made, but it did not equal 
the net profit made in the latter case by the frequency of 
the turnover. 

How Fast Twenty Grocery-stores Turn Their Stocks. 
The annual stock-turn in stores which sell groceries only 
has been found by the Harvard Bureau of Business Research 
to range from 3.5 to 23.8. The majority of stores in this class, 
however, have a stock-turn of from 4 to 10, averaging around 
7. There are many stores which turn their stocks every 
month, thus making 12 turns per year. This should be taken 
as a standard to be aimed at by every progressive grocer. 

Grocery-stores which sell meats and provisions as well as 
groceries have a higher average stock-turn than stores sell¬ 
ing groceries only. This is due perhaps to the fact that the 
former carry more perishable goods which must be disposed 
of quickly. The lowest stock-turn in this class of stores is 
7, the highest 26.4, averaging about 9. A small group of 
this class of store make 14 stock-turns per year. 

Methods of Figuring Stock-turns. There is quite a differ¬ 
ence in the method used for figuring stock-turns in various 
retail stores. One merchant hears another tell how many 
times he turns his stock and what system he uses in making 

126 


THE TURNOVER 


his calculations. He immediately changes the method he has 
been using, regardless of the fact that it has been accurate 
and satisfactory to the best of his knowledge, and accepts 
the other man’s system as being correct. The following five 
methods have been found in use in various stores: 

1. Divide the sales for the year by the inventory, which 
is taken at the cost price. 

2. Divide the annual sales by the supposed average in- 
ventory, which is found by adding the cost price of the mer¬ 
chandise at the beginning of the year and at the end of 
the year, and dividing by two. 

3. Divide the annual sales by the true average inventory, 
month-end computations being made to get this average. 

4. Divide the annual sales by the true average inventory, 
which is taken at the sales price instead of the cost price. 

5. Divide the cost price of the merchandise sold during 
the year by the true average inventory taken at the cost price. 

All five of the given methods cannot be correct, as we do 
not get the same turnover from each. In order to find the 
correct method it is necessary that we illustrate with a given 
business transaction. Merchant A begins the year with a 
$7,000 stock (cost price), the sales for the year amount to 
$20,000, and he inventories an $8,000 stock. The gross profit 
amounted to 30 per cent. 

In analyzing method No. 1, $20,000, the sales for the 
year, is divided by $8,000, the inventory taken at the end of 
the year, at cost. The answer would be two and one-half 
times. But this cannot be true. In the first place, the in¬ 
ventory is taken at the cost price, and is therefore not com¬ 
parable with the sales. In the second place, the inventory 
was taken at the end of the year, a time when all of the 
stocks are at their lowest point, and it is impossible to use 
this inventory as a true average. 

Method No. 2 is analvzed by dividing $20,000, the annual 
127 


RETAIL BUYING 


sales, by $7,500, the average of the two inventories— i.e., the 
amount of goods or merchandise on hand at the beginning 
of the year and at the end of the year. This would give us 
a turnover of two and two-thirds times. But this also is in¬ 
accurate. The $7,500 inventory is not correct. True, it is 
the average at the beginning and the end of the year, but it 
does not represent the true average of the stock. In this 
case, also, the sales, which represent the selling price of the 
merchandise sold, was compared to the cost price of the mer¬ 
chandise inventoried, which is impossible. 

Method No. 3 can be analyzed by dividing $20,000, the 
annual sales for the year, by $8,800, the true average in¬ 
ventory (at cost price), which is found by month-end com¬ 
putations. The stock-turn in this case, should this be the 
correct method of computing the turnover, would be two 
and three-elevenths. In this case we have used the right 
system of finding the true average inventory of stock on 
hand as the amount of stock on hand each month-end is 
added, and the aggregate is divided by twelve, the number of 
months’ figures added. But we are still trying to compare 
the sales at the selling price with the cost price of the mer¬ 
chandise, and this is an impossibility. 

In method No. 4 we have a different proposition to handle. 
The $20,000, the annual sales for the year, is divided by 
$12,572.50, the sale price of the average inventory or mer¬ 
chandise on hand for the year. The true average inventory, 
$8,800, is changed to the selling price by simple percentages. 
The gross profit amounts to 30 per cent., and 100 per cent, 
equals the selling price. Therefore, 100 per cent., minus 30 
per cent., equals 70 per cent. $8,800 equals 70 per cent.; 
1 per cent, is 70 divided into $8,800, which equals 125.714, and 
100 times this 125.714 equals $2,571.40. This gives us a 
stock-turn of 1.59. In this case we have divided the sales 
for the year with the inventory of merchandise which has 

128 


THE TURNOVER 


been taken at sale price. This is correct, as we can compare 
the sales against the selling price of the merchandise on hand. 
It is also correct to use the average stock on hand. 

Method No. 5 is practically the same as method No. 4, 
with the exception that the figures are expressed in costs 
instead of the selling price— i.e., $14,000, which represents 
the cost price of the $20,000 sales for the year, is divided by 
the $8,800, the average stock on hand, and the answer is 
1.59. This system is perfectly correct. It is practically the 
same as the previous one. In one case the cost price is used 
as a basis, and in the other case the sale price is used as a 
basis. 

We have proved that there are only two methods of finding 
the true turnover; one being to divide the sales for the year 
by the average inventory, the inventory to be computed 
monthly at the selling price (note this compares the sales, 
at selling price, against the average merchandise, which is 
also taken at the sale price); the other method is to divide 
the merchandise sold during the year by the average monthly 
inventory at cost. Of course, some stores have a method of 
computing inventory oftener than once per month, some 
weekly or semi-weekly. 

Table showing stock turnovers for various lines: 


Type of Store 

Department stores 

Drug. 

Dry-goods. 

Variety goods.... 

Furniture. 

Grocery. 

Hardware. 

Jewelry. 

Shoe. 

Clothing. 

9 


Average Number 
Turnovers made 
Annually 

... 6.5 

... 5.0 

... 4.5 

... 5.5 

... 3.0 

... 12.0 
... 3.8 

... 1.5 

... 2.5 

... 2.0 


129 












RETAIL BUYING 


STOCK-TURNS IN DEPARTMENT STORES 

Merchandise Stock-turn. The figures on the next page 
are based on statistics taken from the books of one of the 
largest department stores on the Pacific coast. These figures 
are intended to show how many times the selling price of 
the 1913 sales of each of the store’s departments contained 
its average stock at selling price. The merchandise handled 
by this store, like that of many others in this country, is 
very largely of the popular- and medium-priced kinds. 
Hence its figures cannot be accepted as applying to all 
types of retail stores generally. Nevertheless, they will 
prove interesting from the standpoint of comparison. 

We must draw attention to the fact, moreover, that 
the figures shown here are not based on the cost price 
of each department’s average stock, but represent mer¬ 
chandise stock-turns. In short, the figures presented are 
based on the selling price of the average stock carried by each 
department. The small figures in this table represent 
tenths; thus the stock of the store’s art-goods department 
(the first item in the table) was turned two and seven-tenths 
times during 1913, 

How Computations Were Made. A few words more to 
summarize and emphasize how these figures were computed: 

1. At each month’s end during 1913, in the office of the 
Pacific coast store, to which we are indebted for the sta¬ 
tistics, an estimate was made of the selling price of the 
approximate amount of stock then on hand in each de¬ 
partment. 

2. At the year’s end, to find its average stock (for the year) 
each department’s twelve selling-price month’s-end stock 
estimates were added together, and their total thus found 
was divided by twelve. 

3. Next, the total of each department’s sales for the year 

130 


THE TURNOVER 

was divided by its average stock for the year. Here are the 
figures: 

Departments 1913 “Turns” 

Art embroidery, stamped linens, etc., see Art goods. 

Art goods. 2.7 

Baby carriages, see Toys. 

Baskets, see Toys. 

Belts, see Leather Goods. 

Beds and bedding (including blankets, comforts, etc.). 4.8 

Blankets and Comforts, see Beds. 

Books. 3.0 

Boys’ clothing, see Clothing. 

Boys’ hats, see Hats. 

Cameras. 6.0 

Candy. 11.9 

Carpets, mattings, linoleum, and domestic rugs. 2.7 

Chiffon, see Neckwear. 

China, glassware, lamps, electric-lighting fixtures, etc. 1.4 

Clocks, see Jewelry. 

Clothing (Boys’). 2.7 

Clothing (Men’s). 3.4 

Coats (Women’s and Misses’), see Suits. 

Corsets. 4.3 

Domestics, including wash goods, flannels, etc. 3.8 

Dress goods (Wool, etc.). 2.3 

Dress trimmings, see Neckwear. 

Druggist sundries, see Toilet goods. 

Electric-lighting fixtures, see China. 

Embroideries. 2.0 

Flannels and wash goods, see Domestics. 

Frames, see Pictures. 

Glassware, see China. 

Gloves (Men’s), see Men’s furnishings. 

Gloves (Women’s and children’s). 2.9 

Groceries. 11.2 

Hair goods, not including toupees, switches to order, hair¬ 
dressing, or manicuring. 5.3 

Handkerchiefs (Men’s), see Men’s furnishings. 

Handkerchiefs (Women’s), see Umbrellas. 

Hardware, see House-furnishings. 

131 


















RETAIL BUYING 


Departments 1913 “ Turns ” 

Hats (Men’s and Boys’). 1.8 

Hosiery (Men’s), see Men’s furnishings. 

Hosiery and knit underwear (Women’s and Children’s). 3.0 

House dresses, etc. 3.2 

Infants’ wear. 2.9 

Jewelry, clocks, and silverware . 2.1 

Knit underwear (Men’s), see Men’s furnishings. 

Knit underwear (Women’s and Children’s), see Hosiery. 

Lace curtains, see Upholsteries. 

Laces. 2.4 

Lamps, see China. 

Lawns, see White goods. 

Leather goods, belts, etc. 3.1 

Linens, sheets, sheetings, etc. 2.4 

Linens, stamped, see Art goods. 

Linings. 3.5 

Linoleum, see Carpets. 

Mattings, see Carpets. 

Men’s clothing, see Clothing. 


Men’s furnishings, including men’s hosiery, gloves, underwear, 


and handkerchiefs. 2.3 

Men’s hats, see Hats. 

Men’s shoes, see Shoes. 

Men’s underwear, see Men’s furnishings. 

Millinery. 6.5 

Muslin underwear. 3.0 

Neckwear (Women’s), chiffon, and trimmings. 7.4 

Neckwear (Men’s), see Men’s furnishings. 

Notions. 3.5 

Parasols, see Umbrellas. 

Patterns. 2.7 

Perfumery, see Toilet goods. 

Petticoats, see Waists. 

Pictures, frames, etc. 4.1 

Ribbons. 6.4 

Rugs (domestic), see Carpets. 

Sewing-machines. 2.4 

Sheets, sheetings, etc., see Linens. 

Shirts, etc. (Men’s), see Men’s furnishings. 

Shoes (Men’s, Women’s, Misses’, and Children’s). 2.2 

132 





















THE TURNOVER 


Departments 1913 •« Turng - 

Silks and velvets. 2.4 

Silverware, see Jewelry. 

Sporting goods, trunks, suit-cases, etc. 2.3 

Stamped linens, see Art goods. 

Stationery. 2.9 

Suit-cases, see Sporting goods. 

Suits and coats (Misses’). 3.9 

Suits and coats (Women’s). 5.2 

Sweaters (Women’s), see Waists. 

Tinware, see House furnishings. 

Toilet goods, druggist sundries, perfumery, etc. 3.4 

Toys, baskets, and baby-carriages. 2.3 

Trimmings, see Neckwear. 

Trunks and suit-cases, see Sporting goods. 

Umbrellas, parasols, and women’s handkerchiefs. 3.0 

Underwear (Men’s), see Men’s furnishings. 


Underwear, knit (Women’s and Children’s), see Hosiery. 
Underwear, muslin, see Muslin. 

Upholsteries, lace curtains, etc. (but not including wall-paper) 3.4 


Velvets, see Silks. 

Waists, petticoats, women’s sweaters, etc. 3.9 

Wash goods, flannels, etc., see Domestics. 

White goods and lawns. 3.5 


Capital Turns. A department head in a Western store, 
being allowed a working capital of $10,000, realized that his 
opportunity for making a success lay in his ability to turn 
his capital as well as his merchandise. The method used 
was to invest the $10,000 as many times as possible during 
the year. This buyer, being a shrewd judge of rugs, carpets, 
and linoleums, made a practice of attending auction sales 
and buying considerable merchandise at each sale. Because 
the buyer could use quantities and because of his broad 
knowledge of merchandise, excellent values were to be had 
at less than market price. By giving the customers excel 
lent values for moderate prices the merchandise sold freely, 
and the buyer was able to buy frequently. During the firs^ 

133 












RETAIL BUYING 


four fall months of 1916 $48,000 was taken in in this de¬ 
partment. This meant that the capital had worked four 
and eight-tenths times during the period. 

Computing Capital Turns. The average merchandise on 
hand (at cost price) is divided into the total sales (at selling 
price) for the year to determine the capital turns. For in¬ 
stance, $ 10,000 was the average investment in the depart¬ 
ment described, and $48,000 was the sales for the first 
four months. This means that the $10,000 is divided 
into $48,000, and we find that the capital was turned 
four and eight-tenths times. 

We present here a schedule showing the same store’s 
capital turns for the period. In a word, the following table 
shows how many times the selling price of the 1914 sales of 
each department in the store contained the respective de¬ 
partment’s average stock (for the year) at cost price. 

These figures are valuable when used exactly in this way 
—to show how a buyer is using the allotment for his depart¬ 
ment. They cannot be used to compute the true stock-turn 
figures for the whole business, because they are obtained by 
using one set of figures on the cost basis and one on the retail 
basis. It will be noticed that the figures are relatively higher 
than the corresponding figures above for the true or stock 
turnover. 


Departments 1914 “Turns” 

Art Embroidery. 3.0 

Baby-carriages, see Toys. 

Belts, see Leather goods. 

Blankets, comforts, etc. 4.8 

Books, periodicals, etc. 3.4 

Boys’ clothing, see Clothing. 

Boys’ hats, see Hats. 

Buttons, see Notions. 

Cameras. 7.2 

China, glassware, etc. 2.5 


134 







THE TURNOVER 


Departments 1914 “ Turns” 

Clothing (Boys 7 ). 4.8 

Clothing (Men’s). 5.0 

Clothing (Merchant tailoring). 4.0 

Coats (Women’s and Misses’), see Suits. 

Corsets, brassieres, etc. 7.8 

Cotton sheets, pillow-cases, etc. 10.7 

Dresses, see Suits. 

Dress goods (Wool, etc.). 4.8 

Dress trimmings, see Laces. 

Electrical appliances, see Lamps. 

Embroideries. 3.4 

Flannels, see Wash goods. 

Furs. 1.9 

Glassware, see China. 

Gloves (Women’s and Children’s). 4.3 

Gloves (Men’s), see Men’s furnishings. 

Handkerchiefs. 4.7 

Hardware, see House furnishings. 

Hats (Men’s and Boys’). 4.2 

Hosiery (Women’s and Children’s). 4.2 

Hosiery (Men’s), see Men’s furnishings. 

House-dresses, see Negligees. 

House furnishings, not including trunks and baby-carriages.. 6.4 

Infants’ wear, etc. 3.8 

Jewelry, silverware, etc. 4.0 

Kimonos, see Negligees. 

Knit underwear, etc. (Women’s and Children’s). 3.1 

Knit underwear (Men’s), see Men’s furnishings. 

Laces, trimmings, etc. 3.3 

Lamps, shades, electrical appliances, etc. 3.3 

Leather goods, etc. 9.7 

Linens. . .. 3.1 

Linings.*. 9.6 

Men’s clothing, see Clothing. 

Men’s hats, see Hats. 

Men’s furnishings, including men’s gloves, underwear, hosiery, 

etc. 3.4 

Men’s underwear, see Men’s furnishings. 

Men’s shoes, see Shoes. 

Merchant tailoring, see Clothing. 

135 























RETAIL BUYING 


Departments 1914 “Turns” 

Millinery. 11 • 5 

Muslin underwear, etc. 5.0 

Neckwear, etc. (Women’s). 14.2 

Neckwear (Men’s), see Men’s furnishings. 

Negligees, including petticoats, house-dresses, kimonos, etc.. 4.6 

Notions, buttons, etc. 6.0 

Patterns. 10.1 

Petticoats, see Negligees. 

Ribbons. 5.3 

Sheetings, etc. (Cotton), see Cotton. 

Sheetings, etc. (Linen), see Linens. 

Shoes, etc. (Men’s). 2.8 

Shoes, etc. (Women’s, Misses’, and Children’s). 2.9 

Silks and Velvets. 4.2 

Silverware, see Jewelry. 

Stationery, including commercial stationery, etc. 3.0 

Suits, coats, etc. (Misses’). 6.6 

Suits, coats, etc. (Women’s). 8.9 

Suit-cases, see Trunks. 

Sweaters (Men’s), see Men’s furnishings. 

Sweaters (Women’s and Children’s), see Waists. 

Toilet goods, etc. 6.3 

Toys, baby-carriages, etc. ... 4.5 

Trimmings, see Laces. 

Trunks, bags, suit-cases, etc. 8.4 

Underwear, knit (Women’s and Children’s), see Knit. 

Underwear (Men’s), see Men’s furnishings. 

Underwear, muslin, see Muslin. 

Veilings, etc. 4.7 

Velvets, see Silks. 

Waists and women’s and children’s sweaters. 6.9 

Wash goods, flannels, etc. 4.8 

To Find Average Stocks. The following method was used 
in computing each department’s average stocks. At each 
week’s end during the year the amount of stock then on 
hand in each department was estimated. At the year’s end, 
therefore, there were available for each department (in- 

136 




















THE TURNOVER 


eluding the amount of the stock with which the respective 
departments started the year) 53 stock figures. In each 
case, at the year’s end a department’s 53 stock figures were 
totaled and their sum divided by 53; the result thus obtained 
was set down as the respective department’s average stock 
for the year. 


XI 


THE INVENTORY 

Inaccurate Inventories Cause Many Failures. Failure to 
make accurate inventories is the cause of many failures to 
make money, and usually leads into bankruptcy. It is the 
unknown which is threatening. But when the cloud is known 
to be a cloud only, it loses its menacing effect. If a retailer 
is not disposed to be classed as an “extra-hazardous” credit 
risk, he will be ready with facts and figures to submit to his 
banker, or others who have a right to know of his financial 
condition. 

An inventory amounts to nothing if it is not an accurate 
statement, showing the financial standing as well as the proper 
condition of the stock of merchandise on hand. Notwith¬ 
standing the fact that most merchants agree to this, many 
stores are to be found where the proprietor marks the 
cost on the merchandise when receiving it, and then inven¬ 
tories it year after year at this cost price, regardless of the 
fact that the market price might be 20 per cent, higher or, 
more likely, 50 per cent, lower than at the time of purchase. 
The merchant who disregards his commodity is only fool¬ 
ing himself. Modern inventory systems suggest that every 
dollar’s worth of stock be inventoried for what it is actually 
worth—not what the retailer is liable to realize should he 
be fortunate enough to sell, but the amount Mr. Merchant 
would have to pay for this stock should he purchase it in its 
present condition. 


138 


THE INVENTORY 


What Is the Merchandise Worth? Women’s wear, suits, 
coats, dresses, millinery, and the like, depreciate 50 per cent, 
after having been in stock one full season. The style changes, 
of course, have a tendency to raise or lower this depreciation. 
Should the change be a radical one, the garment would not 
bring over 15 to 20 per cent, of original selling price. (A 
$20 garment marked down to $4 should be inventoried at $2). 
This system gives opportunity for an advantageous showing 
of profit on this merchandise the following year. Men’s 
clothing depreciates at least 20 per cent, yearly. Prints, 
ginghams, percales, domestics, cotton goods, etc., if in good 
condition, are worth what they would cost to rebuy, and they 
should be inventoried at market value; sugar, flour, syrup, 
meats, etc., should also be treated in the same manner. 
Broken and soiled merchandise should be taken low enough 
so that a profit may be realized on inventory when the mer¬ 
chandise is sold. 

The merchant who inventories his stock of merchandise 
according to the above suggestions may record a material 
loss on “closing books” the first year, but he will find that 
his next inventory will show a substantial profit as well as 
his true financial status. The method enables the marking 
of the old merchandise at a price where it must sell at a profit, 
and it positively “rushes off” accumulating stock and allows 
a more frequent turn of stock. 

Preparing for the Inventory. The method of preparing 
for stock-taking and clearance sales seems to vary with 
the different stores. In some stores stock-taking comes first 
and clearance sales afterward, while in others the stock is 
cleaned out by means of sales before the inventory is taken. 
Most merchants regard the latter method as the wise one. 
Under such a policy, prior to the inventory period, all stocks 
should be reduced to a minimum. The buying of some line 
of merchandise (staples, notions, etc.), is, of course, essential 

139 


RETAIL BUYING 


and as it is poor business policy to allow every department 
to become starved, “ fill-ins ” should be kept up. Care should 
be exercised, however, in not purchasing more than is ab¬ 
solutely necessary. 

Examples of Preliminary Work. Take the shoe depart¬ 
ment as an example. Within a reasonable number of days 
before the end of the store’s fiscal year, during the quieter 
moments, the clerks begin to straighten up their respective 
sections of the stock. They carefully examine, assort, and 
count the contents of each carton, drawer, bin, and case. 
As they handle each lot they write the result of their count, 
etc., in pencil, on what we shall here term a “first-count 
slip.” They place one such slip for each lot in the respective 
shelf or drawer with the counted goods. In certain stores 
the shelf, drawer bin, or case number is also noted on the 
respective slips. 

In some stores these slips are merely strips of ordinary 
wrapping-paper, cut to a uniform size. In other stores these 
slips are printed blanks providing spaces for filling in various 
details, as quantity, style number, selling price, cost number, 
etc. 

Shift the Stocks and Examine the Goods. The stock 
should be shifted at stock-taking time to ascertain the exact- 
condition of the merchandise; to run over it as it lies is not 
sufficient to determine this point. For instance, in one store 
during inventory period the men were counting and calling 
the stock. A stock of trousers on the top shelf was being 
called, and the proprietor, who was passing at the moment, 
suggested that they be taken down and handled. With re¬ 
monstrances that this was but extra labor, it was done. It 
was found that where the edges of the trousers were exposed 
they were streaked, the discoloration being caused by the 
dust settling on them, as they were above ordinary reach 
and escaped the dailv rounds of the whisk-broom. A good 

140 


THE INVENTORY 


brushing saved them, but had they remained untouched for 
a few weeks longer the discoloration would have been per¬ 
manent. This discovery brought about a change in the ar¬ 
rangement of the stock as a result of shifting the goods during 
the inventory. 

Examine everything—every item m tne stock—for two 
reasons: To learn its present value— i.e ., salableness, and to 
become acquainted again with the stock on hand. It is ap¬ 
parent that every article in the house should bear a plain 
mark for the purpose of avoiding confusion and loss of time, 
as well as the time it is offered for sale. 

Numbering Done in Advance. To make sure, however, 
that none of these first-count slips get lost, each is consecu¬ 
tively numbered in advance. Here is one of the ways in 
which a good numbering-machine can save time. Besides, 
its use adds “tone” to the first-count slips and enhances 
the accuracy of the numbering work. 

These consecutive numbers (on the first-count slips) of 
the shoe department have no connection with the similar 
numbers put on first-count slips in each other department 
in the store. Each department head, through his assistants 
or heads of stock, keeps track of the first-count slips he has 
distributed among his force, so he can hold each clerk to ac¬ 
count for those given. 

Changes After First Count. Inasmuch as the counting, 
measuring, etc., as suggested, begins before the year’s real 
end, it happens that after certain lots have been counted 
new goods of that kind will arrive. More frequently it 
happens that some of the counted items are sold. In each 
of such instances the respective first-count slip (lying on the 
shelf) is changed accordingly. And if a clerk who wants to 
make such a correction cannot find the first-count slip which 
he thinks he ought to find, he, of course, must promptly 

report the matter so that a dummy or duplicate slip may be 

141 


RETAIL BUYING 


made at once. By sucn means much of the worK connected 
with inventorying can be done before the official stock-taking 
date. 

Taking Stock While Business Goes On. The old method 
of keeping salespeople and those who have charge of the stock 
long after hours straightening out inventories and listing 
goods carried on shelves has given way to-day to a new 
and much better method which permits the taking of stock 
during business hours and while the department is busy 
selling. This system may vary in stores a trifle in minor de¬ 
tails, but on the whole it is much alike, adapting itself to 
the coat-and-suit department as well as the waist or shoe 
section, or elsewhere. When that date arrives the work 
proceeds promptly along the following lines: 

Inventory. The first consideration is to determine what 
plan is to be used in the invoicing. Is the stock to be taken 
at net cost, cost and carriage (some merchants add 5 per 
cent, to cover freight and express), or at retail price, pref¬ 
erably the first price at which goods are marked before 
mark-downs begin? Some of the larger stores have adopted 
a method of inventorying at selling price only, while others 
are following the plan of inventorying at both cost and selling 
prices. The medium-sized and smaller stores have been ad¬ 
hering to the plan of inventorying at original cost or market 
value (cost). The advantage to be gained by taking an 
inventory at cost and selling prices is readily seen. The dif¬ 
ference between the per cent, of profit marked on the mer¬ 
chandise, or shown by the inventory sheet, and the per cent, 
of profit realized from the operation of the various depart¬ 
ments, will, in some instances, be very great. 

Having decided on the basis of figures at which the goods 
are to be listed, next provide books ruled with a sufficient 
number of columns to accommodate the various head-lines 
under which to enter the stock, such as: lot number, kind 

142 


THE INVENTORY 


of merchandise, sizes, price, or any other important feature 
of record to be kept. 

Some concerns make use of the loose-leaf sheets, given here¬ 
with, for official inventory, having these sheets bound in covers 


SMITH, JONES & COMPANY 

Sheet No._ 

Date_191 Department A 


Stock No. 

Description 

Quantity 

Price 










































containing a half-dozen or a dozen pages. Numbers of small 
books are absolutely essential in stores where six, eight, or 
more people are employed in taking the inventory, because 
a greater number of clerks can be put to work simultaneously 

than when the proprietor, working both night and day, did 

143 

































RETAIL BUYING 


the recording in the one book. And this is true, of course, 
not only regarding the preliminary work of entering on the 
sheets while the calling-off is being done, but also regarding 
the later work of figuring and refiguring the items. 

A competent person goes through the shelves, drawers, 
cases, etc., and, taking up one count after another, calls off 
from these to another assistant who enters the respective 
items on the inventory sheets. By having the small wares 
counted, with slips of paper bearing the quantities placed 
on top of the lots, either in boxes or open stock, much time 
will be saved in the calling. The longer the work is drawn 
out the harder and more irksome it becomes. A $20,000 
stock should be called in a few hours when a proper first 
count has been prepared beforehand. 

Have Numerous Subdivisions. Just as it is beneficial 
to keep each department's goods separate in the inventory 
instead of jumbling together, so it is desirable to cut up each 
individual department's inventory into as many parts as is 
practicable. In inventorying a shoe department’s stock the 
stock-sheets might be subdivided into ten different sections, 
as follows: 1. Women's high shoes. 2. Women's low shoes. 
3. Men's high shoes. 4. Men’s low shoes. 5. Women's 
slippers. 6. Men’s slippers. 7. Misses’ and children’s shoes. 
8. Boys’ and youths' shoes. 9. Rubbers and rubber boots. 
10. Findings. Moreover, the subdivision can go still further 
so as to segregate (within each of the ten subdivision’s 
names) certain styles or colors or leathers, etc. 

All Sheets Are Carefully Followed Up. Just as the first- 
count slips are consecutively numbered (in advance), so, too, 
are the official inventory books or loose leaves. Thus every¬ 
body handling them can be debited with the “numbers” 
intrusted to him or her, and credited for them when he or 
she returns them to the proper authorities. 

A still further advantage of using thin books or loose 
U4 


THE INVENTORY 


leaves is due to the fact that when each individual clerk 
holds at one time the figures of but a small fragment of the 
stock, he or she thus gets but little knowledge of the depart¬ 
ment’s total. Under other conditions, the one handling the 
books may get a pretty fair idea as to the stock’s total in¬ 
ventory and other confidential data on the operation of the 
business. 

Page Totals Not Carried Forward. Another point to be 
mentioned is that, whatever system may be employed, each 
page or sheet is footed independently. That is to say, page- 
totals or sheet-totals are not carried forward in the ordinary 
way. This plan of keeping each page-total or sheet-total 
separate—provided the recapitulating work is properly done 
—simplifies and expedites matters in various ways. 

By such means, with much less trouble than might be 
imagined, even the bigger stores gather in a few days a 
mass of information regarding their stocks on hand that 
proves of great value to all concerned. 

Annual, Semiannual, or Monthly Inventory. Many 
merchants are doing apparently good business, but still they 
are losing money yearly, without a definite knowledge as to 
how or where the money is lost. For instance, a Western 
millinery store was doing a fair volume of business. The 
owner conceived the idea of doing a tremendous Easter 
business by making leaders of trimmed hats at $1.98, $2.98, 
$3.98, and $4.98, taking for granted that these popular prices 
would cause higher-priced hats and pressed shapes (the 
articles upon which the larger percentage of profit was made) 
to sell. He also advertised a free trimming service in case 
flowers, feathers, or ornaments were sold. The sales force 
was not informed as to what merchandise was the profit- 
maker. Consequently they pushed the articles (the trimmed 
hats at $1.98, $2.98, $3.98, and $4.98, upon which practically 
no profit was made) because they were the easier to seU. The 

io 145 


RETAIL BUYING 


Spring, 1916 

SEASON 

Description 

Unlined 

Full-lined 

Full-lined 

Half-lined 

Lined 

Black & white 

Frilled collar 






47 

1 00 

1 ^ 













45 


I46I 

1 




46 









43 

44 

44 






44 






41 


42 

42 


42 


,42 








39 


40 

40 



40 


40 

40 






37 

20 

38 

20 

00 

CO 



38 

38 






rH 

iO 

CO 

00 

rH 

36 

36 


36 

00 

rH 



00 

rH 





iO 

tH 


co 

rH 

34 

CO 

rH 

34 




CO 

rH 






CO 

rH 


rjn 

rH 

32 












INVENTORY SHEET. Article —Women’s Coats 

Firm — Jones, Smith & Black 

Reduced 

Selling 























Selling 

75 

00 

00 

75 

00 

00 

75 





10 

20 

30 

18 

25 

to 

rH 

22 





Cost 

75 

75 

50 

50 

00 

1 

00 

00 





CO 

CO 

H 

O 

rH 

0 

t-H 

to 

rH 

0 

rH 

rH 





Color 

Navy 

Hague 

Black 

Navy 

Rookie 

Check 

Black 





Cloth 

Serge 

Poplin 

Velours 

Serge 

Gabardine 

Poiret 

Taffeta 




Style 

131 

134 

126 

173 

CO 

CO 

i-H 

142 

t-H 

04 

rH 




i 

1 


146 


Fig. 2 —Stock-sheet for Keeping Continuous Inventory 































































































THE INVENTORY 


sales were increased 50 per cent., but at inventory time 
the records showed no profit made during the year. The 
merchant decided to locate the season in which the loss 
occurred by inventorying the stock each quarter. This 
was done, and it was found that during the Easter sea¬ 
son enough loss occurred to eat up the profits for the re¬ 
maining seasons. 

There are, of course, some few drawbacks to frequent in¬ 
ventorying. Many merchants complain of finding invoicing 
once per year rather difficult because of the lack of interest 
on the part of the salespeople, and lack of time on account 
of business during regular hours. It will be readily conceded 
that most salespeople dread inventory work; but after making 
a start they find it much easier than they had anticipated. 
Frequent inventorying causes them to lose this dread and 
to become more accurate. 

Continuous Inventory. Because of limited capital, de¬ 
mand for frequent turnovers, and necessity of detail knowl¬ 
edge with regard to stocks, several so-called continuous or 
perpetual inventory systems have been perfected. These 
are, moreover, very applicable to certain kinds of merchan¬ 
dise. Ladies’ ready-to-wear, men’s clothing, stoves, shoes, 
and hats are the best suited commodities for this type of 
inventory, while groceries, notions, small wares, etc., would 
require much clerical work, if each sales-slip were to be 
checked and marked off of stock-sheets. Continuous in¬ 
ventory showing quantity, however, is not essential for 
the latter lines. 

Keeping up a continuous inventory is greatly facilitated 
by using the correct form of inventory sheet, together with 
the proper means of keeping a systematic check. Fig. 2, 
used in connection with Fig. 3 (stock-tag) is used by a pro¬ 
gressive Western store for continuous inventory in the 
women’s-wear department. Columns are provided for gar- 


RETAIL BUYING 


ment, style number, cloth, color, cost, selling price, reduced 
selling price (this to be entered from stub, Fig. 3, at the time 
of the reduction), sizes, and description. 

Each manufacturer from whom merchandise is received 
has a page or pages (stock-sheets); he is also given a lot 

number, and this number 
is recorded on the stock- 
sheets as well as on the 
merchandise - tags. Be¬ 
cause of the possibility 
of several manufacturers 
having the same garment 
number, and in order 
that garments may be 
more readily located, this 
precaution is used. The 
stock-sheets can best 
be kept in a loose-leaf 
binder, as this plan elimi¬ 
nates any possibility of 
any pages becoming mis¬ 
placed, and new pages 
may be inserted wherever 
necessary. 

When this merchan¬ 
dise is sold, the sales¬ 
person tears or breaks 
off the lower half of the 
perforated tag and places 
it in a box which is kept conveniently located for the purpose. 
Each morning or evening, as the case may be, this box is 
emptied, and the stub-tickets are checked against the clerk’s 
sales-tickets to make sure that the merchandise was actually 
sold for marked price. The stub-ticket is then entered as 

148 



















THE INVENTORY 


sold on the stock-sheet by writing date of sale above size 
garment, as, coat No. 131, Fig. 2. 

Reduction in price should be entered both on stock-sheet 
and merchandise-tag at the time of the change in price. 
This avoids any possibility of price changes on the mer¬ 
chandise-tag without detection when entering the date of 
sale. 

When used correctly, an actual inventory total, both in 
dollars and cents and number of garments, may be had on 
a few moments’ notice. This system also shows what “fill- 
ins” should be purchased, as well as showing the merchant 
what lines sell more readily and which are “stickers.” 

Fig. 4 shows form of sheet used for continuous inventory 
by a successful bargain-basement manager. The sheet has 
columns for basement number, description of article, manu¬ 
facturer’s stock number, cost price, selling price, quantity, 
and blank margin for entering sales. 

All merchandise is given a basement number on receipt 
and entered in the back. The manufacturer’s stock number 
is also entered, in order that the article may be reordered, 
should it be necessary. Cost price, selling price, and quality 
are entered as well. Each commodity is tagged with base¬ 
ment number and selling price, other information being 
available by looking up basement number on stock-sheet 
in stock-book. 

When selling the commodity the salesperson enters the 
basement number and selling price on the sales-slip. These 
accumulated sales-slips are collected each morning by the 
person in charge of marking merchandise, and entered on the 
stock-sheet with red ink. 

Much work is required in using this system, as each sales- 
ticket must, necessarily, be checked from the book, and 
this work cannot be postponed from time to time, because 
the system is worthless unless kept up to date. 

149 


RETAIL BUYING 

MARSHALL FIELD & CO. 10/1/14 



Basement 

Description 

Stock 

C 

S.P. 

Quantity 



1850 

Books 

309 

.07 

.10 

1.2— 


— 

1851 

Blocks 

5537 

.15 

.25 

1— 


1852 

Chairs 

1289 

.19 

.30 

4— 


1853 

(( 

1288 

.21 

.39 

4— 2 


1854 

Beds 

1425 

.39 

.59 

2— 


— 

1855 

u 

1553 

. 56 

.98 

2— 

- - 

1856 

a 

647 

.45 

.85 

8— 


1857 

Furniture 

5148 

1.05 

2.00 

4— 1 

1 . 

— 

1858 

ii 

5107 

.77 

1.50 

4— 

— 

1859 

ii 

M5121 

2.08 

3.95 

1— 


1860 

ii 

5140 

2.75 

4.95 

1— 



1861 

Desks 

1293 

1.63 

2.95 

1— 1 



1862 

a 

0409 

1.10 

1.95 

2— 1 



1863 

u 

1229 

2.08 

3.95 

2— 2 



1864 

Horse-stick 

1524 

.17 

.25 

12— 



1865 

Doll-cabs 

1363 

.45 

.79 

1— 



1866 

U 

1377 

1.00 

1.95 

1— 1 



1867 

u 

1369 

1.37 

2.50 

3— 2 


— 

1868 

a 

1432 

1.40 

2.75 

2— 


1869 

ii 

1435 

2.75 

4.50 

2— 2 



1870 

ll 

1442 

3.25 

5.50 

1— 



Fig. 4 
150 














































Fig. 


THE INVENTORY 








9606 

9605 

9604 

9603 

9602 

9601 

9600 

Invoice 

Number 







6/5 

6/4 

6/4 

6/4 

6/3 

6/3 

6/3 

Date 







Samuels Bros. 

Morimura Bros. 

Cerf Brothers 

Marshall Field & Co. 

J. J. Johnson Co. 

E. Siegel & Co. 

Marshall Field & Co. 

Name of Firm 






CO 

h-* 

to 



to 

h-* 


Amount of 
Invoice 






48 

75 

30 

25 

64 

50 

00 







20 

00 

00 

00 

00 

00 

00 

20 






h-i 

to 

to 

CO 

H-* 


CO 

h-i 


! 

Selling 

Amount 






74 

25 

00 

90 

85 

33 

33 







36 

00 

00 

00 

00 

33 

33 

70 






CO 








Mark-Up 

i 






26 

50 

70 

65 

to 

h-i 

83 

33 

CO 






35 

00 

00 

00 

00 

52 

33 

C7I 

o 







22.2 

23.3 

CO 

to 

24.7 

25.1 

25 

45.4 

Crf 

/O 

Mark-Up 


151 
























































RETAIL BUYING 


Perpetual Inventory System Used by a Specialty Shop. 

Fig. No. 5 shows stock-sheet used by a successful specialty- 
store company in keeping accurate account, in dollars and 
cents, on merchandise on hand. Merchandise is checked 
and marked from invoice on receipt, and the sale price 
extension is filled in at the same time. Pencil figures 
should be avoided, as there is great danger, when making 
payment, of paying retail extension instead of cost amount. 
Red ink is preferable, because manufacturers, brokers, com¬ 
mission-houses, and jobbers never use colored inks in render¬ 
ing statements. The percentage of mark-up should be figured 
and recorded in the lower left-hand corner; necessary in¬ 
formation on bill should be recorded on stock-sheet (Fig. 
5), as invoice has been recorded. Each invoice is con¬ 
secutively numbered, treated as Fig. 5, and entered. All 
columns are kept totaled— i.e., the amount of each invoice, 
the amount of selling-price mark-up, and percentage of 
mark-up is added to those already reserved during the year. 
This total of cost price, plus the inventory, gives the cost 
of merchandise on hand, while the total of selling amount, 
plus retail inventory, gives the sale price of merchandise on 
hand. The sales are deducted from total retail sale price, as 
follows: 



Cost 

Retail 

Inventory, June 1. 

$40,000.00 

$60,000.00 

Purchases since received. 

948.20 

1,274.36 

Total. 

$40,948.20 

$61,274.36 

Sales since June 1. 


2,250.00 

Total. 


$59,024.36 


Let one hundred equal cost price, as cost is the unknown 
quantity. One hundred plus 28.56 per cent., which was the 
average per cent, of mark-up on all merchandise received, as 

152 









THE INVENTORY 


well as inventory, equals 128.56. Two thousand, two hun¬ 
dred and fifty dollars, the sale price of merchandise sold, 
divided by 128.56 equals $1,750.16, the cost price of 
merchandise sold. 


$2,250.00-r-128.56=$1,750.16, cost of merchandise sold. 
Totals. . . $40,948.20 cost $61,274.36 

1,750.16 2,250.00 


$39,198.04, cost of 
merchandise on hand. 


$59,024.36, sale price on 
merchandise on hand. 


This plan may be used with each day’s sales, and an ac¬ 
curate knowledge of merchandise on hand, both cost and 
sale price, may be known at all times. 




XII 

STOCK-KEEPING AND STOCK-RECORDING 

Stock-keeping. Although in one of the best locations in 
one of the most flourishing towns of southern Wisconsin, a 
dry-goods merchant is allowing his business to slip away from 
him. In the first place he does not give the proper time and 
attention to the business because, as he confesses, he does 
not get enough out of it to pay him. A customer entering 
the store is greeted with the same arrangement and display 
she has been seeing every time she has entered the store 
in fifteen years. The various stocks are located in the same 
positions. The piece-goods department presents a most un¬ 
sightly appearance. Discolored, faded, and unevenly rolled 
bolts are heaped on the shelving; soiled and broken boxes 
are protruding from the notion counter; linens and fancy- 
work pieces are piled on the inside of the cases; boxes of all 
sizes, colors, and shapes are mixed together in the hosiery 
department; piles of merchandise, which should be attrac¬ 
tively displayed in cases and packed away in stock-boxes, 
are stacked on the counters and cases. The place has well 
earned the name of “The Junk-shop.” 

This merchant has been greeted with the sight for such a 
length of time that he becomes accustomed to it. He does 
not take into consideration that his customers judge the 
merchandise by the way it is kept. If he should take a 
short vacation and spend part of it in an up-to-date store, 

154 


STOCK-KEEPING AND STOCK-RECORDING 


he would return to the store sufficiently disgusted to pitch 
in and reorganize it. The first job would be to show the 
clerks how to keep stock in the correct way. 

An orderly, well-kept stock is one of the best advertise¬ 
ments that a merchant can have. It insures that the mer¬ 
chandise is kept in correct condition; as a result the customer 
is better satisfied, sales are made easier, the losses through 
depreciation are less, merchandise can be more easily located, 
and a greater sales volume may be had at the least investment. 

Store Fixtures. The question of fixtures is a very im¬ 
portant one, and one which meets with much discussion and 
disagreement. The leading merchants and trade publica¬ 
tions all over the United States have given their ideas on 
the subject. Still, no definite conclusion may be drawn. 

In any discussion of the subject it is well to bear in mind 
the type of store, the class of clientele, the character of the 
merchandise handled, and the amount of space to be used. 
Each particular type of business calls for different equipment, 
and the brains of the proprietor must be used to decide just 
what is necessary. 

Numerous merchants in all kinds of business advocate 
that there should be no such an account as the fixture account. 
The ready-to-wear merchant of this class makes use of the 
common gas-pipe fixture because he believes that by so 
doing he can save money and sell the commodity to the 
public for less money. Glass cases are useless to him be¬ 
cause his merchandise is not on the hangers long enough to 
become dusty, while the glass cases would require much 
time and labor to keep clean, and they would not be as ac¬ 
cessible to the prospective customer. 

Are Expensive Fixtures Necessary? The clothier of this 
class says a man goes into the clothing-store to see clothing, 
not glass fixtures. He is much better pleased when he can 
see the piles of clothing about him on tables and he is en- 

155 


RETAIL BUYING 


abled to handle it. The forties are kept together on tables, 
and, should this be the size desired, one coat after another 
may be tried on, and in less time than is required to remove 
the hangers from the coats. 

Many grocers claim that as there is so little profit in their 
goods they cannot afford to invest much in fixtures. Many 
customers do not enter the store, as they order by telephone. 
In fact, it is quite possible to keep a small grocery-store clean 
and neat without the aid of expensive fixtures. 

The Selling Value of Attractive Fixtures. On the other 
hand, how much business could Marshall Field & Company 
do without the aid of their up-to-date fixtures? Their 
fixtures add much prestige to the merchandise which they 
carry. Nine-tenths of their customers would turn up their 
noses and walk out of the store were they forced to walk 
over uncarpeted floors and make their selections from stocks 
of merchandise kept in cheap or antiquated fixtures. There 
are certain classes of people who are willing to pay for the 
environment, and the merchant is expected to make the 
surroundings suitable to the tastes of the most fastidious. 

The same is true of representative stores in New York 
City, Boston, Philadelphia, Chicago, Buffalo, and other 
centers where the clientele is made up of the upper classes 
of the city. Each store tries to outdo the other in the matter 
of furnishings and equipment. The customers who frequent 
such stores have beautiful homes and they are accustomed 
to such fittings. The stores’ officials have learned that it 
is absolutely necessary to fit the stores in such a manner as 
to make the customer feel at home. The stores would be 
flat failures were they to attempt to merchandize in any 
other way. 

Fixtures Should Be Adapted to the Trade. In these 

same cities, however, there are other stores doing equally 
as much business as the high-grade store previously referred 

156 


STOCK-KEEPING AND STOCK-RECORDING 


to, with much less money invested in equipment and fixt¬ 
ures. Their customers do not demand it; in fact, their 
customers are many who are unaccustomed to extrava¬ 
gantly furnished surroundings, and they purchase more freely 
when fitted properly. An actual happening, which will 
help emphasize this idea, may be cited: A lumberman, 
after making a great deal of money in a certain section in 
the northwestern part of Wisconsin, decided to expend 
some of this money by fitting up one of the best and most 
up-to-date stores for its size in the United States. A costly 
building was fitted up with expensive furniture and fixtures, 
heavy carpets were put on the floors, and everything to har¬ 
monize was put in place. Complete stocks of merchandise 
were purchased and installed. The store would have done 
justice to Michigan Avenue, and a visitor might have thought 
that the store expected to derive its trade from the residents 
of Lake Shore Drive. The only patrons, however, were to 
be the farmers and lumberjacks of the surrounding territory. 
The place was too fine for them, and the store did little busi¬ 
ness. The prospective customers would come to the front 
door, look at the carpet, then at their feet, and walk away 
with their eggs to some general store where they could sit 
on a box and expectorate on the floor while the merchant 
exchanged their eggs for groceries. 

Another example of fitting up too fine a store for the trade 
happened in a much larger town. A store, in a city of six 
thousand, prospered and thrived by catering to mill-hands, 
machinists, laborers, and the like. It was decided, as busi¬ 
ness was so good, that a much larger patronage could be had 
were the store large enough and well-fitted enough to handle 
it. All the latest fixtures were installed, a modern front was 
put in, and everything was made convenient and inviting. 
The business failed to come, and the old trade began to drop 
away because the fittings and furnishings proved too elabo- 

157 


RETAIL BUYING 


rate. The store went into the hands of the receivers in less 
than two years after the alterations were made. 

Fixtures for the Up-stairs Store. Any merchandizer or 
careful observer of merchandizing principles readily admits 
that the up-stairs store does not hold its trade through the 
use of expensive fixtures. The kind of merchandise handled 
does not necessitate the use of elaborate fittings. The ad¬ 
vertisements usually read: “Walk Up and Save Five Dol¬ 
lars.’ ? The values given for the money are what cause the 
customers to walk out of their way. They save a few dollars 
by walking, and they do not expect to be greeted with an 
elaborate display of equipment. Economy in equipment 
enables this saving to the customer, and most of them are 
aware of this fact. 

It is a well-known fact that the higher-class and higher- 
priced garments are not carried in stores of this type. Com¬ 
modities are carried in stock that will meet the requirements 
of the type of customer who is anxious to economize in her 
dress. High-price merchandise is usually carried in stores 
where the wealthy customer is catered to. Therefore we may 
well say the type of store, the class of clientele, and the 
character of store go hand in hand. 

There are times in every man’s business when improve¬ 
ments must be made. It sometimes happens that making im¬ 
provements will reduce some expense sufficiently to cover the 
amount expended. Every one knows the customer likes to do 
her purchasing in the thriving store. In other words, she 
likes to go where the bulk of the people go. Improvements 
frequently herald to the trade your store is doing a flourishing 
and a profitable business, and it, in turn, begins flocking 
to the most thrifty store. Fixtures, if they are suitable to 
the type business, sometimes reduce the cost of carrying 
the stocks. This may cause more sales, and there is a chance 
of the customer deriving a benefit through the expenditure. 

158 


STOCK-KEEPING AND STOCK-RECORDING 


No-Counter Idea. Some merchants, for instance, believe 
it impossible to do business without the aid of the counters, 
while others have long since given up the use of counters 
in many departments. John Wanamaker, the first to try 
cut the method, has done a tremendous piece-goods business 
by making use of show-tables instead of counters. This 
same principle has been worked out advantageously in the 
store of the writer. It was found that the customers actually 
gave more time to the looking than previously. Many, in 
fact, passing down the aisle, with no definite purpose in 
mind, stopped to look at piece goods cleverly displayed on 
the tables, when they would hesitate about stopping before a 
counter because of the seeming obligation to buy. Courteous 
salespeople, taking advantage of the situation, begin showing 
other merchandise, and before the customer realizes it a 
desire is created for the commodity and a sale is perfected. 

In making use of the table plan it is necessary to reserve 
every third table for a measuring-table. Certain kinds of 
merchandise, not display, may be shown on these tables. 
But care must be had to see that these tables are always 
kept clear, so that they may be had for their original purpose 
whenever they are needed. 

Six-foot tables are the most adaptable for the purpose. 
They should be placed some three feet apart so as to allow 
space for the prospective customer to walk between the tables 
if necessary. These tables should be covered each morning 
with newly received merchandise cleverly displayed. 

This same idea has been tried and found to be successful 
in many kinds of business. Bargain-basement managers 
have found that it is impossible to do without the table 
system, because their merchandise must be displayed in 
order to make ready sales. The merchandise is put out so 
that the public may wander through the aisles, examining 
everything and make their own selection. Grocers have 


RETAIL BUYING 


found that certain kinds of goods carried in their stocks find 
more ready sale when put out so that the customers may find 
new things. This plan, of course, would be an impossibility 
where the commodity shown could be sampled by the public. 
Chain stores make a remarkable example of what can be 
done by putting the merchandise into the hands of the public. 
It would be impossible for them to sell one-third the mer¬ 
chandise were it necessary to carry it on shelves and show 
it as the ordinary hardware merchant shows his wares. One 
of the largest drug-stores in New York City, one of the 
Liggett chain at Thirty-fourth Street and Broadway, makes 
use of the same plan in the sale of its package candies, toilet 
articles, rubber goods, and novelties. Brentano’s Fifth 
Avenue Book Store would not be able to sell anything like 
the number of books it sells annually were the customers 
not permitted to walk through undisturbed at will. They 
frequently enter out of curiosity, and, in wandering around, 
find several or more books that they purchase before leaving. 

Lace-curtain and drapery departments are doing away 
with their counters, as they are beginning to realize that 
fifty-dollar curtains are never sold unless they are displayed. 
Even expensive cretonnes and denims are being shown on 
tables and well displayed, so that the customers may see at 
a glance what is in vogue. 

Without a doubt, people purchase more freely if al¬ 
lowed to handle merchandise, as they are enabled to have 
a greater selection in a shorter time. Tables are also in¬ 
surance against lazy salespeople failing to show enough mer¬ 
chandise. 

Store Arrangement. The location of a department has 
much to do with its success or failure. Departments may 
be so arranged as to make individual stock-keeping and 
stock-work most effective. In fact, store arrangement is a 
science which is acquired through a study of the individual 

160 


STOCK-KEEPING AND STOCK-RECORDING 


store, the clientele, the salespeople, and the merchandise. 
Each department must be located where it will have the 
greatest pulling powers and where it can do the most 
profitable business. 

A large city department store featured a men's-wear de¬ 
partment for many years. The department began to decline. 
The men who as boys had purchased all their wearables of 
the store began hunting up the specialty shops. The truth of 
the matter was that men preferred to make their purchases 
where they would not come in contact with women cus¬ 
tomers. The store soon saw fit to establish a separate store 
in which men could shop in comfort. Other department 
stores have found that it paid them to have their men’s-wear 
department situated just inside the door or on one side of 
the store. Men prefer to shop where they can step inside 
of the door, make their purchases, and get out. As a rule, 
they do not require much time to make their selections, 
and they do it while on their way to work, during lunch- 
hour, or on their way home in the evenings. 

Staples and free-selling merchandise are usually kept in 
the rear of the store, in the basement, or in some other part 
of the store where the customer must pass through the main 
aisles in order to reach that department. During the latter 
part of March, 1916, the store of the writer purchased a bank¬ 
rupt stock of merchandise. There was a fair-sized grocery 
stock in the purchase. It was decided to use this as a real 
leader. In order to pull the people through the store, this 
stock was placed at the rear end of the second floor, so that 
customers who wished to reach this department would 
necessarily have to pass through the aisles of the down¬ 
stairs, and through the entire up-stairs, before reaching the 
wanted stock to make their purchases. In passing through 
the store the people saw whatever else was being displayed, 
and many purchases resulted. The entire grocery stock was 

ii 161 


RETAIL BUYING 

cleaned out in less than a week, together with most of the 
other stocks. 

This plan should be worked in each individual stock. The 
customer should be forced to pass well-displayed merchandise 
in order to reach the free-selling commodities, and at the 
same time attempts should be made to place each line of 
merchandise so that it will be most conveniently situated 
for the prospective customer. The old adage, “ Cheaper 
goods to the front,” is a thing of the past. There was a 
time when this idea, when worked effectively, was a great 
puller. But now, before making contemplated moves, it is 
necessary that some study be made of the public with rela¬ 
tion to this particular department and to competitive de¬ 
partments. 

Receiving-room. The average customer, as well as sales¬ 
person, has a weakness to see what is in new packages or 
boxes. Many times some buyer will be striving to mark a 
bill of goods while a number of customers are busy going 
through the various packages, mixing up all kinds of things, 
so that it is impossible for the buyer, because of fear of 
offending, to remonstrate. Frequently articles are lost, 
numbers and labels misplaced, and much confusion results 
in attempting to make the statement tally with the mer¬ 
chandise received. This trouble and worry could easily be 
eliminated by having a regular room or compartment set 
aside for the purpose, not accessible to the customer. All 
incoming goods should be sent to this department for open¬ 
ing, marking, and recording. Many stores have such a 
department in the rear of the store, conveniently located for 
the expressman; it may also be used as a packing-room for 
outgoing parcels. Everything is tagged, labeled, pin- 
ticketed, etc., before leaving for the stock-room or the regu¬ 
lar selling department. 

Reserve Stock. In larger stores, where it is an absolute 
162 


STOCK-KEEPING AND STOCK-RECORDING 


necessity, certain space is set aside for reserve-stock rooms. 
Usually it is the least desirable space in the house. Base¬ 
ments and lofts above selling-floors make ideal stock-rooms 
because the space is of less value, and ample space may be 
given each department in order that its merchandise may 
be kept separate from all others. Again, these are most adapt¬ 
able for stock-rooms because they are inaccessible to the 
help in general (much petty thieving being done direct from 
the reserve stocks by the help) and stocks may be kept cleaner 
and more orderly with less labor. One large store makes use 
of its furnace-room by using it, both winter and summer, for 
reserve-stock room for hosiery. Hosiery is bought in case 
lots and placed in this reserve stock. Sometimes it is moved 
to regular stock in less than a week’s time, and at other times 
it remains in reserve stock for eight or ten months. Need¬ 
less to say, this store has not the best reputation for hosiery 
in the city. 

An argument that is sometimes used against stock-rooms, 
and which is indeed a just argument, is that where enough 
space is allowed for this purpose the buyers strive to and feel 
the need of purchasing enough merchandise to keep all space 
filled. In this way much more merchandise than is necessary 
finds its way into the house and stocks are not turned as 
frequently, and losses through dead stock are more prevalent. 
Doubtless many small stores have no need for stock-rooms, 
and they would be, indeed, a hindrance to correct mer¬ 
chandizing. A larger, well-assorted ready stock may be car¬ 
ried and less capital will be invested. It is much better to 
depend on the reserve stocks of the wholesalers, jobbers, 
or manufacturers, and much more profitable for the retailer. 

Sampling. A store in Natchez, Mississippi, loses many 
dollars monthly because of the lack of an efficient method 
for the giving of samples. When a customer asks for samples 

swatches are cut direct from the bolt, enough being given at 

163 


RETAIL BUYING 


one time for three or four samples. The bolt is then folded 
and returned to its proper place in the shelving. On sev¬ 
eral occasions green clerks have made mistakes by cutting 
six- or eight-inch samples off the bolt, lengthwise, cutting 
along the selvage instead of crosswise. When a customer 
returns to make a purchase, the section running entirely 
across the bolt of cloth except for the sample which has 
been cut, is thrown in with the purchase. 

A more efficient method, and one that will save many 
dollars during a year, as well as aid in stock-keeping and 
save the salesman’s time, is to cut two one-inch strips 
from each bolt of goods, as it is received in the department, 
the entire width of the material, these strips then being cut 
into six-inch swatches, suitable to be handed out to the cus¬ 
tomer. These swatches are then put in a large manila en¬ 
velope, kept for the purpose, and placed on the inside of 
the bolt, next to the board. 

Stores desirous of obtaining accurate figures showing the 
amount expended in sample-giving, as well as those following 
a practice of making a direct charge to “mark-down” for 
merchandise used for this purpose, have a system by which 
each person in charge of a department must enter in a book, 
which is kept for the purpose, the yardage, together with 
the price, cut from each bolt for samples. No one except 
the stock-keeper has the authority to cut a sample from any 
bolt of goods. At the end of each week these books are 
totaled and the grand total is sent to the office to be charged 
and recorded. 

Open Stock. Grocery stocks, and especially canned goods, 
etc., should be shifted equally as often as any other kind of 
merchandise, and in some cases it is advisable to shift them 
even more frequently. For example, in a small grocery 
condensed milk was found that had been on the shelf over 
two years. The milk, upon opening the can, was found to 

164 


STOCK-KEEPING AND STOCK-RECORDING 


be so thick and hard that it had to be cut out with a knife. 
This grocer had trusted his stock-work to young boys, who 
did their work in the easier way. When fresh shipments were 
received the new goods were put on the front of the shelving 
and the older was shoved to the back. Consequently the 
new goods were selling before the old. 

Once each week the entire shelving should be gone through, 
canned goods wiped off, shelving scrubbed, condensed-milk 
cans turned, and the newer goods put to the back of the 
shelving in order that the old will sell first. This keeps the 
stock fresh and new. Besides this, each man in charge of a 
stock should see that his entire stock is dusted each morning. 
The dusting of a grocery stock, or a paint-and-varnish stock, 
is just as important as the cleaning of a fine piece-goods 
stock. The cleanliness of a store will impress a customer 
more than anything else, especially where the store is handling 
commodities which the customer must eat. 

Arranging and Handling Open Stock. The stock is ar¬ 
ranged on the shelving in the same orderly manner, and 
placed so as to attract the eye of the prospective customer. 
The slow sellers should be given the most conspicuous places, 
and the free sellers should be placed in the less desirable 
locations. A stock-boy should be required to go through 
the stock frequently during the day, moving up and filling 
in from behind, to fill the gaps caused through the sales. 

The main stock-work should be done the first thing in the 
morning. At that time there are few customers to disturb 
the work, and the salespeople are more ready to do such 
work than after a hard day. In addition all merchandise 
should be removed from the shelving once each week and 
the shelves scrubbed, the merchandise cleaned and replaced 
to the proper place. Brushing clothing, wiping shoes, 
polishing hardware, etc., is not the most pleasant occupation 
for the salesperson, but it certainly saves money for the mer- 

165 


RETAIL BUYING 


chant. The keeping of every article fresh, free from dust, 
and in a thorough salable condition is one of the most im¬ 
portant functions of the clerk’s duties. Dust and dirt can 
be removed from clothing, if taken in time, which would 
otherwise cause discoloration and damage. 

Filling in Open Stock. Replenishing stock must also be 
done at this time. Lists should be made out (if the reserve 
stocks are kept in regular stock-rooms) showing what is 
needed. In smaller stores mental inventory serves the pur¬ 
pose, as one section is taken at a time and filled in before 
taking another. 

Want-books should be kept in every department, and 
salespeople should be instructed to enter everything called 
for that they are unable to furnish. Stock-books (want- 
books) are kept in reserve stocks also, in order that entries 
may be made when the amount on hand of any commodity 
reaches the minimum. By using such a method there is 
absolutely no possibility of ever being out of any staple 
commodity. This alone does more to build a thriving 
business than any other one thing. 

Few salespeople realize that stock-keeping is an art; 
an art in which no lazy person can become proficient. 
In order to keep a department in decent condition every 
moment that can be spared from serving trade should be 
spent arranging and rearranging stock. A large amount 
of money is invested in stocks and the customers must 
see the goods before they buy. They never buy a jumbled 
mass. 

Old Stock. Dead stock seems to be quite a problem in 
some stores. We find it placed high on top shelves, in draw¬ 
ers, under the counters, in stock-rooms, and in other out- 
of-the-way places where it is utterly impossible to make it 
move by sale. In fact, most of the time the old stock is 
anywhere but where it should be. The merchant is not 

166 


STOCK-KEEPING AND STOCK-RECORDING 


overly anxious about exposing it to view, although much of 
his well-earned profit is tied up in it. He appears to be 
ashamed of the fact that he has made a few mistakes. The 
salespeople, naturally, take the same attitude toward this 
kind of merchandise. 

The merchant is indeed a poor reader of human nature 
when it comes to making a study of his salespeople. That 
the salespeople will do things in the easiest way is an undis¬ 
puted fact. They will sell, or attempt to sell, the thing that 
can be shown with the least exertion. Few will climb to 
the top of a step-ladder, or dig through drawers and under 
counters, to get rid of a “sticker,” unless a “ spiff ” is attached 
to furnish the inducement. It is generally found that the 
average salesperson will show the merchandise in which he 
has a full line of sizes and styles, so that the customer may 
make an easy selection. 

Handling Old Shoe Stocks. A “live-wire” shoeman has 
found a way to keep his store clean of old stock. Up to two 
years ago he had many troubles and sleepless nights. After 
several months spent in making a study of his store, his sales¬ 
people and their methods, and his stock, he decided to move 
all the old stock to the most accessible place on the shelves. 
Frequently he found it necessary to change the lot number 
in order to hide the identity of some certain shoe. This 
caused some of his clerks to show certain numbers without 
recognizing them as “stickers.” Whenever any number in 
stock begins to slow up in selling it is moved so as to be most 
convenient to the salesperson. The salesperson is instructed 
to show merchandise first from these shelves. When the mer¬ 
chandise becomes a real “sticker” it is moved to the counter¬ 
bargain department. The price is cut sufficiently to make 
it move. In this way this merchant has built up a good 
business, as well as found a way to make his one of the 

cleanest shoe stocks in the State. 

167 


RETAIL BUYING 


Merchants in all lines of business make a mistake in putting 
the good sellers out where they will be seen and pushed, 
and the old stock out of the way, where it may remain until 
the next inventory season. Why not put some of the mer¬ 
chandise that is called for every hour in the day under the 
counter? There is no chance of it becoming forgotten. The 
old stock should be placed before the public and kept there. 
Goods that remain on the shelves are wasting time and 
money for the merchant. Why not admit the mistake, cut 
the price, no matter what the sacrifice, and get rid of such 
merchandise? It pays in the long run every time. 

Keeping Fixtures in Good Condition. Counters and cases 
should be cleaned with furniture and glass polish at least 
once per week, rubbed with cloths each morning, and dusted 
at numerous intervals during the day. It does not pay to 
have the customer detect any dust or dirt on the counter. 
It frequently happens that there is dust on the counter, 
and when merchandise is placed on the counter the dirt 
flies up on the customer, or the delicate article being shown 
is soiled. Salespeople have plenty of time during the day, 
and they should become accustomed to dusting the counters 
once per hour, whether the counters need it or not. 

Arranging Counter Displays. After cleaning counters and 
cases each morning some kind of a display should be made. 
Unit displays are the most effective. For instance, the 
toilet-goods cases should have a small unit display of toilet 
goods cleverly displayed on the top of the case. Piver’s 
goods will serve as an example. 

Florayme extract (essence), small, medium, and large. 

“ Toilet water. 

“ Eau v6g£tal. 

“ Savon (soap). 

“ Poudre de riz (face powder). 

“ Poudre & sachet. 

168 


STOCK-KEEPING AND STOCK-RECORDING 


The line can be displayed in such a manner as to attract 
the eye of the prospective customer. The second morning 
a different line should be shown, displayed in a different 
way; and so on until the entire stock has been shown in 
this manner. The grocery department can use a different 
line of canned goods each morning, carrying out the same 
idea. 

Keeping Cartons in Good Condition. In order to keep 
the appearance of the store at its best, the salespeople must 
be made to put up the merchandise after they have served 
the customer. This must be done not only to preserve the 
appearances, but to reduce the losses caused by damaged 
merchandise. Two years ago, while in Green Bay, Wiscon¬ 
sin, the writer had the extreme displeasure of observing a 
poor salesgirl attempt to make a sale. The counters were 
not clean, to begin with, as there was a pile of merchandise 
already there which should have been previously replaced 
on the shelving. The girl’s customer wanted something for 
an evening dress. The girl began showing delicate shades in 
taffetas, satins, and charmeuses. Ten or twelve pieces were 
shown when the customer decided that she would like to 
see what nets, combined with the satins, would look like. 
The girl showed several pieces of net, then brought several 
dirty, dusty stock-boxes, full of chiffons, and placed the 
boxes on top of the delicate silks and nets. Needless to 
say, the customer did not buy. She walked out looking 
rather disappointed. The girl went back, put on her hat 
and coat, and walked out of the store to go to lunch, 
leaving the entire lot of merchandise on the counter just 
where she had left her customer. No wonder the customer 
did not buy and that the store is doing less business than 
it should be doing. A clever salesperson could have handled 
this particular customer, and put up the merchandise as 
quickly as the customer showed that she did not care for 

169 


RETAIL BUYING 


it, after having placed something else on the counter. Three 
or four pieces could have been left on the counter at all 
times. The customer would have had fewer pieces to be¬ 
come confused over, and the chances for a selection would 
have been much greater. The salesperson would have had 
little trouble in replacing the four pieces to the shelving 
before attempting to serve the next customer or going to 
lunch, and nothing would have become soiled and damaged. 

The Importance of Stock-recording. A small haber¬ 
dashery, on one of Chicago’s busiest corners, is doing a 
business of $150,000 a year in a surprisingly small space 
through the aid of a systematic method of stock-keeping and 
recording. A small stock-room on one of the upper floors 
is connected by a square chute with the main store. A re¬ 
serve stock of merchandise, sufficient to supply the demand 
for four days, is kept under the care of a stock-man in this 
stock-room. The salespeople, when in need of merchandise, 
may telephone, by the use of a house telephone connecting 
the store with the stock-room, and the merchandise is im¬ 
mediately dropped down the chute, the only outlet of the 
stock-room. The bulk of the merchandise, being staples, 
may be obtained from manufacturers or jobbers on several 
days’ notice; in fact, some of it may be had the same day 
the order is delivered. Hence the method of stock-recording 
in this case is very important. 

The merchandise loses its individual identity upon being 
received. It is immediately given a number which denotes 
what the commodity is, the style, color, etc. The size, 
should it have one, is written, in each case, after the number. 
For instance, 1890-33-14 would denote the article sold was 
a shirt, all one-thousands being shirts, and 33-14 would de¬ 
note the size, 33-inch sleeve, and 14 signifying the size of the 
neckband. By referring to the stock-book, page eighty-nine, 
the second and third figures furnishing the page key, number 

170 


STOCK-KEEPING AND STOCK-RECORDING 


1890 shows the name of the manufacturer from whom pur¬ 
chased, the pattern, and the color. 

Four cashiers are used in the store during busy hours, 
and these have little or no regular work to do during the 
early forenoon when trade is not brisk. They each spend 
several hours sorting sales-tickets, keeping each commodity 
separate. All shirt tickets are put together; likewise hosiery 
tickets in another pile, and so on. A chart is then made 
showing what merchandise has been sold, in order that re¬ 
orders may be intelligently made. Merchandise is ordered 
daily in some lines, or every second day, and in other lines 
every Monday morning, and the merchandise, mainly from 
local manufacturers or jobbers, is usually received within 
twenty-four hours. 

Stock-recording with this store is very necessary, as its 
unusually small floor space calls for a well-systematized 
recording method. With this system, however, the store 
makes many times the stock-turns of the average store. The 
floor space, being so limited, calls for unusual attention to the 
merchandizing, and this attention assures frequent stock- 
turns and little dead stock. 

Stock-recording Systems. There are many simple methods 
of stock-recording. One store makes use of an ordinary 
note-book, entering commodities received, consecutively 
numbered (separating each shipment by a blank line), to¬ 
gether with the name of the manufacturer from whom re¬ 
ceived. The merchandise is given the same number as en¬ 
tered in the book, together with the price-mark, for future 
reference. This system is adaptable for grocery, hardware, 
and drug stocks, as well as dry-goods and haberdashery 
stocks. 

The following more elaborate system, which is practical 
for any type stock of merchandise, is particularly adapted 
to a piece-goods stock. Regular board-end caps or metal- 

171 


RETAIL BUYING 


bound tags are attached securely to the bolt as soon as it 
reaches the stock-room. On this tag is recorded the date 
upon which the merchandise was received, the place where 
the necessary data pertaining to this particular piece, such 
as from whom purchased, cost, shade number, etc., may be 
found, the name of the material, width, and sale price. An 
ordinary stock-book is used, and entries are made as soon as 
the merchandise is received. 


XIII 


INSTRUCTION TO SALESPEOPLE 

“Why don’t you sell your goods to your clerks?” 

“Why, what do you mean?” said the grocer. 

“Watch that sale over there and you will see,” replied 
the visitor. 

A customer was attempting to purchase canned tomatoes. 
It seemed that the customer was undecided between the 
ten- and the thirteen-cent cans, both being the same size. 
The clerk was unable to tell the woman the difference in 
quality, and in fact went so far as to say that he did not think 
there was much difference, as both cans were put out by the 
same concern. Finally the grocer had to take a hand in the 
sale. He explained to the customer that the more expensive 
cans were filled with rich, red whole tomatoes, and a little 
juice; while the other can was filled with broken fruit, of a 
slightly discolored appearance, with plenty of juice. Of 
course he sold the better goods once he had explained the 
difference. 

The grocer, preferring to sell the better grade, as there was 
a larger margin of profit, should have opened one of each of 
the cans so that all of his salespeople might have learned 
the difference. This instruction would have cost nothing, 
as the opened can could have been utilized in one of the 
homes of some member of the store family, who would will¬ 
ingly have paid the cost price. It would have enabled all 

173 


RETAIL BUYING 


of the store people to talk intelligently on this one commodity, 
and it would have enabled them to get the customer’s con¬ 
fidence. 

In a companion volume of this series on Retail Selling 
will be found a full discussion of the subject. The purpose 
of the present chapter is to emphasize the buyer’s relation 
to the instruction of the clerks, particularly in merchandise, 
for it is apparent that the one who bought the goods is most 
familiar with it, and therefore best able to explain its merits 
to others. Therefore it is quite logical, even in large city 
department stores which maintain elaborate educational 
organizations, that the work of instruction in merchandise, 
and in handling the merchandise, should devolve upon the 
buyers, and equally that this function of the buyer be in¬ 
cluded in a treatise on his work. 

Meetings for Discussion. There are many methods used 
by buyers in giving the necessary information to the sales¬ 
people and in training them to greater efficiency. Meetings 
of those who are selling, with demonstration sales, and dis¬ 
cussion of those sales, often bring out points which the buyer 
feels those selling need. One buyer, who conducts meetings 
of this kind, watches the salespeople during the week, making 
note of the points of salesmanship which he considers espe¬ 
cially strong or weak. In the discussion after the demonstra¬ 
tion sale he will ask,for example,“Miss Jones, if a mother and 
her daughter were together, and the daughter wished to buy 
French heels, and the mother wished her to have common- 
sense heels, what would you do?” In these meetings new 
points concerning the merchandise may also be presented. 
This same shoe buyer explains every week any new mer¬ 
chandise which has come in, or any points in regard to newest 
styles which he feels is important. The girls themselves, 
who have charge of any part of the stock, often give points 
of interest concerning the merchandise. 

174 


INSTRUCTION TO SALESPEOPLE 


Printed Information. Another method of instruction is 
to place at the disposal of the employees such trade journals 
or manufacturers’ publications as will be helpful to them. 
For example, Hart, Schaeffner & Marx issue publications 
explaining the manufacture of their clothing, and suggestions 
which they feel will be helpful to the retail clothier and his 
clerks. The buyer can obtain these by inquiry, and can 
encourage his salespeople to read them. It is becoming 
more and more the custom for manufacturers to issue pub¬ 
lications of this kind, and they are glad to send them to the 
buyers who are interested, even though not purchasers of 
their goods. 

Bulletin-boards. One effective means of interesting the 
employees along this line has been found to be through a 
bulletin-board, on which is posted a list of the articles which 
the buyer considers important. Here is also posted a list 
of the new merchandise and any other information to which 
the attention of the employees should be called. 

Personal Attention. Of course it is not possible to make 
every clerk take advantage of such training, but the live 
buyer who is working continually with his people can weed out 
the people who do not develop and employ fresh material 
to take advantage of his training. Frequently a high-grade 
salesgirl may be found in this fresh material. Shortly before 
this was written, a green country girl applied to a ready- 
to-wear buyer in an Eastern city for a position. The buyer, 
not having much faith in recommendations, asked what 
experience she had had and what salary she had received. 
The girl replied that she had spent four months working in 
a fruit-store, receiving four dollars per week as compensa¬ 
tion. She added that she did not care for that kind of work, 
and that she wanted an opportunity of making good in a 
live department. The girl was so earnest in her convictions 
that the buyer engaged her to begin working the following 

175 


RETAIL BUYING 


morning. She was instructed to spend the first week going 
through the stock and observing the girls selling on the floor. 
At the expiration of this period she had learned that every 
customer was to be approached the moment she entered the 
department and greeted with a smile and a cheery “Good¬ 
morning” or “Good-afternoon,” as the case might be. Dur¬ 
ing the week she had learned the other simple principles of 
salesmanship, as well as some little knowledge of the mer¬ 
chandise she was to handle. Soon she was selling more 
goods than any other girl on the floor, because she had high 
aspirations and because she took advantage of the oppor¬ 
tunity and of the suggestions of the buyer. The buyer had, 
however, carefully observed her selling-methods and had 
frequently asked one of the older girls, in this girl’s presence, 
whether or not she did not think a certain method—as, for 
instance, one demonstrating how to put the coat properly 
on the customer—the best to use. The girl, being quite apt, 
quickly grasped the point and changed her methods accord¬ 
ingly. In addition to this, sales demonstrations were fre¬ 
quently staged, one girl acting as the salesgirl, another as the 
customer, and the remaining members of the force criticizing 
the methods used in the selling. Not only the new help 
profited through these demonstrations, but many of the 
older people realized that there were better methods than 
the ones which they had been using for years. 

Teaching Points on Merchandise. The merchandise is 
naturally the most important thing to know about. That 
kind of information is necessary every moment in the day, 
as the customer generally asks sensible, logical questions 
about the merchandise which she contemplates purchasing. 
She wants to know about the things which enter into the man¬ 
ufacturing of the commodities, and the length of service 
they may give. The salesman must learn how to pick the 
commodity to pieces in order that the most important selling- 

176 


INSTRUCTION TO SALESPEOPLE 


points may be given to the customer without any hesitancy. 
Even ordinary sausage has selling-points. The customer 
purchases sausage to eat. Consequently taste is the most 
important feature. The kind of pork used, as well as the 
spices; the maker’s name and the place of manufacture, 
as well as many other points, are of value in creating a 
desire. The salesman is, after all, a creator of wants, and 
in order to create these wants, whether it be for sausage, 
corsets, furniture, or coal, the salesman must know his 
merchandise. 

Of course, the same feature that would appeal to one cus¬ 
tomer might not appeal to another. For instance, using a 
piece of furniture as an illustration, we have the following 
points to talk: Style, price, exclusiveness, service, maker’s 
name, testimonials, reputation, etc. One customer might 
be interested in how this furniture would wear, while another 
would care more about the style. The average customer 
does not tell us what points she is the most interested in. 
Consequently the salesman must be capable of judging his 
customer in order that he may not bore her by taking up her 
time in telling her something that she does not care about 
hearing. 

Below are listed some of the important facts about several 
commodities, which will serve as an example of the type of 
information which should be provided clerks. 


Talking-points for Clothing Salesmen 

There are clerks who know that a certain suit is a good suit. 
There are others who know why a good suit is a good suit. Both 
kinds are employed in the men’s-clothing department. 

Everything else being equal—native intelligence, interest in the 
work, knowledge of the principles of salesmanship, energy, and 
alertness—the why clerk will sell the most. If he does not make 
the greatest number of sales he will, at least, make them in a more 


RETAIL BUYING 


creditable manner than the clerk who is only able to say, “Here 
is a good suit of clothes and it is just your fit and model.” He can 
call attention to distinguishing points in fabric, fit, style, workman¬ 
ship, and finish that will interest and impress his customer and in 
the long run add to the customer’s satisfaction. And, as every one 
knows, the satisfied customer is the best asset in building profitable 
business. 

Instruct the Salesmen. If it were a physical possibility, no re¬ 
tailer could do better than take his corps of men’s-clothing sales¬ 
men through the factory of a reputable manufacturer of men’s 
clothing, under the direction and guidance of the manager of the 
house or the foreman of the factory. The suit in the making presents 
selling-arguments that are not apparent to the clerk who has seen 
only the finished garment, but which will prove invaluable to him 
in his relations with customers. This article is for the purpose of 
providing retail salesmen with these talking-points. 

Testing the Fabric. The making of a suit actually begins in the 
receiving-room, where the cloth that is to go into the suit first lands 
in the factory. In the receiving-room the cloth is tested for quality, 
strength, weight, and color. That is, its suitability and quality 
are determined before it is taken to the next process in the making. 
The tests are simple, so far as making them goes, but what they 
bring out about the goods is of the utmost importance in the build¬ 
ing of a finished garment that is to give the customer satisfaction, 
and the manufacturer and distributer reputation for value. 

No matter what the cloth is—cheviot, worsted, cashmere, flannel, 
or whatever—it is tested for strength with a view of ascertaining 
its quality and durability. 

A small strip is taken from every bolt of cloth as it comes into 
the receiving-room and is put on a machine designed to register 
the resistance of the fabric per square inch. Each end of the strip 
is placed between clamps, and these are forced away from each 
other by a screw, subjecting the cloth to a strain of 20, 30, 40, or 
more pounds to the square inch. The better manufacturers of 
men’s clothing consider this test essential if the customer is to get 
the best for the money. It tells whether the goods are made of 
good raw material, and whether that material is properly spun, 
woven, and finished. 

Tested for Weight. After the fabric is tested for strength, it is 
tested for weight. A weighing-machine, built especially for the 
purpose, is used. It is graduated in such a way as to show whether 

178 


INSTRUCTION TO SALESPEOPLE 


the fabric weighs 10, 11, 12, 14, or 16 ounces to the yard. What a 
piece of goods weighs has a bearing on what it should be used for 
—summer clothing, winter, or spring clothing—and what service it 
should give, besides showing whether or not the material is up to 
the required standard. The weighing-machine is so delicately ad¬ 
justed that the slightest variation is registered when a piece an 
inch square is weighed. 

Color, Pattern, Etc. A third test, made by an expert in color, is 
made to ascertain whether faults exist in color, etc. A sample- 
book made of swatches of every piece of goods that has been ordered 
is kept in the receiving-room. After the piece, 50 to 80 yards in 
length, is received it is compared with its corresponding swatch 
in the color-book to see if it is right in shade, pattern, and similar 
details. This is done to make sure that all the suits of the same 
fabric will be uniform as to color. 

For Defects in Weave. A fourth test, and an important one, is 
made for defects in the weave. The piece of goods is unrolled and 
drawn over a frame called a “perch,” being carefully examined for 
holes, broken threads, threads of the wrong color, or, in fact, any 
other defects that would detract from the quality of the suit. When 
the examiner finds fault he ties a white string in the margin of the 
piece, so as to mark its location. Then the cutter, on beginning 
his work, can avoid using that portion of the goods. The tests made 
on this “perch” insure that the customer gets a suit that has no 
defect in the weave or color. 

Evidently the clerk who is familiar with these tests is in a posi¬ 
tion to infuse some interesting, intelligent, and convincing argu¬ 
ments into his selling-talk. 

For Correct Measurement. A fifth operation in the receiving- 
room is a test only in the sense that it shows how many yards 
of goods there are in a piece. This operation is carried out 
on a machine consisting of a revolving drum and a meter to 
indicate yards. One end of the piece of goods is fastened on 
the drum, and as the drum revolves the yardage is registered 
on the meter. Thus the clothing manufacturer avoids paying 
for more goods than he has received. 

After the piece has been measured it is folded to await orders for 
cutting. 

Sponging and Shrinking the Cloth. After the qualifications of the 
cloth as material for a suit of clothes have been thus determined, 
it is subjected to the sponging or shrinking process. In this con- 

179 


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nection it may be remarked that the foundation of a good suit is 
laid in the shrinking-room. 

No matter how high the quality of a piece of woolen or worsted 
fabric, it is likely to be stretched, either intentionally or uninten¬ 
tionally, in the process of making or rolling at the mills. If made 
into a suit before being shrunk it would do its shrinking on the 
wearer’s body, through rain, or even from dampness in the air. 

“London” shrinking, or “cold-water” shrinking, as it is called, 
takes up the slack in the goods. There are two important steps 
in this process. The first is the wetting process. The piece of 
cloth is placed between pieces of heavy wool cloth that have been 
soaked in cold water and have absorbed all the moisture they will 
hold. One of these wet cloths, after being dipped in a tank of cold 
water the width of the goods to be shrunk and about five feet 
long, is laid on a platform. The goods to be shrunk are laid on the 
wet cloth and folded a certain number of times, according to the 
weight of the fabric. If it is thin, more folds are made; if it is 
thick, less. Then another wet cloth is placed on top of the folds. 

This process, a wet blanket,and then two or four folds of the cloth, 
is repeated until the pile is six or seven feet high, and weighs alto¬ 
gether—wet cloths, water, and goods—several tons. The goods 
remain in this state for from eighteen to twenty-four hours and 
gradually become as wet as the cloths. 

Drying the Cloth. After the wetting process comes the second 
step—the drying. The goods are taken from between the wet 
blankets and hung up to dry by natural means, no artificial heat 
being employed. The piece of cloth is hung up on racks. Its own 
weight tends to stretch it while it hangs, but it is hung high enough 
to prevent its touching the floor, as that would arrest the shrinking 
process. After it has thus dried, it is honestly London shrunk. 
It cannot shrink on the wearer. 

Subjected to Heavy Pressure. After being taken from the drying- 
room the cloth is subjected to a further finishing process. It is 
laid in folds between heavy squares of cardboard and put into a 
finishing-press. Between every sixteen folds a hot iron is laid, and 
the whole pile—folds of goods, pieces of cardboard, and hot plates 
—is subjected to hydraulic pressure. 

After this the cloth is taken out of the press and folded by hand 
to prevent stretching, which would partly undo the good accom¬ 
plished by the London shrinking. 

Not only is the cloth shrunk, but the better houses also submerge 

180 


INSTRUCTION TO SALESPEOPLE 


all the tape, haircloth, and canvas used, thus bringing all the 
building materials that go into the suit to a state of perfect uni¬ 
formity so far as shrinking goes. 

Steam Shrinking. Steam shrinking is used for certain pur¬ 
poses by the better houses, but not as a substitute for London 
shrinking. In this process the cloth is run over a drum, from 
which escapes a column of steam, and is wound around a cylinder. 
It is then unrolled and left standing in folds until placed in the 
drying-room. 

After the London-shrinking process, and the finishing process, 
which smooths out wrinkles and gets the cloth into good shape, it 
is ready for the cutting-room. 

The Cutter’s Pattern. The designer has, of course, done his work 
before this stage of the process is reached. He has originated style 
ideas which embody the best views of the trade for the coming sea¬ 
son. Much of the designer’s work is intangible—the combining of 
style and fashion trends into an idea or number of ideas which will 
meet with the needs of the trade and be in conformity with the pre¬ 
vailing style in men’s clothes. What he does to get his ideas is not 
of great use to the clerk in selling. But the clerk should know how 
his ideas are given tangible form and what their relationship is to 
the cutter’s pattern. 

The cutter works from block patterns. These are the designer’s 
ideas in tangible form. They are made from what are called 
“ black patterns,” the first pattern the designer works out of his 
ideas and adaptations of what will be the mode in men’s clothes. 
The black pattern is so named because it is made of black paper. 
The designer originates the black pattern for, let us say, a size 37 
sack suit. The style of the season is to be a sack suit, coat 29 
inches long and shoulder 43^ inches in width. 

Model Closely Examined. One suit is cut out from the black 
pattern and then made up. This is an experimental model. It is 
examined, discussed, and criticized from every possible angle— 
width of lapel, length of coat, set of shoulder, width of shoulder, 
everything that pertains to its shape and design; everything that 
will affect its looks, fit, comfort, and adaptability to the use for 
which it was originally intended. 

When this experimental model meets the approval of all con¬ 
cerned in its making, block patterns for the cutter’s use are 
made in all sizes, from 37 up to 42, and from 37 down to 
size 33. It must be understood that this is the process for 

181 


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one model only—a sack suit. Every model and the pattern 
for it are created in the same way. 

When the patterns for a season are completed by the designer 
and are in the cutting-room the cutting begins. 

The Hand-cutting Process. All the better manufacturing houses 
cut by hand, contrary to the prevailing idea that fifty or sixty 
or more suits are cut out at once by machinery. Hand-cutting 
assures perfect fit and proportion in every garment. In cutting 
goods by machinery the size scale in the top and bottom suits of 
the pile is likely to vary. 

In the cutting-room of the manufacturing house will be found 
long tables on which the goods are laid out for cutting. The pat¬ 
tern is marked out for a whole suit. The patterns, made of card¬ 
board, are laid out on the piece of goods which is to be cut and are 
marked with chalk. 

All the different sections of the pattern, when placed in position 
for cutting, form a “lay.” It is several yards long. The parts of a 
“lay” are identical with the parts of the pattern, but they are 
laid in three rows side by side, instead of in a strip, as the cutter 
would lay them. 

Cut With Shears. When the pattern has been traced it is cut 
by hand with shears, just as a custom tailor cuts out a single garment. 
All the parts of cloth are then done up in bundles—a bundle for 
each garment: coat, vest, and trousers—and each bundle is ticketed. 
After the suit is cut out the lining is matched up from a swatch of 
the cloth. 

It should be added here that the lining is measured and cut by 
hand just as the cloth is, and with just as much care and attention 
to detail. 

Pattern Parts for Sack Suits. The pattern parts for an ordinary 
sack suit are as follows: Coat: (1) fore part, (2) back part, (3) fac¬ 
ing, (4) top sleeve, (5) undersleeve, (6) collar, (7) under-collar. Trou¬ 
sers: (1) forepart, (2) back part, (3) waistband, (4) fly. Vest: (1) 
fore part, (2) back part, (3) facing, (4) pockets. 

When all the parts of a suit, pants, vest, or an overcoat are cut 
out of the cloth, and the lining has been cut out to match, the 
bundle, lining and all, is ready to go to the factory, where work is 
begun on it. 

Factory or Making Department. Let us take the coat now, for 
example. Its seven parts of cloth and their corresponding parts of 
lining are matched for fittings. This means: flaps for pockets, 

182 


INSTRUCTION TO SALESPEOPLE 

stitches to indicate where buttons go, and the matching of stripes, 
checks, and patterns—patterns in the sense of figures in the goods, 
not in the sense of the outline the cutter follows. 

Matching for stripes or checks simply means that if the goods 
are striped, for example, the stripes on the pocket must coincide 
with the stripes in the coat, and the stripes must coincide in any 
other place where two pieces of goods meet, as the vent in the 
back of the coat, or the sleeve where it is joined to the shoulder. 
The same holds good for checks or any other pattern in the cloth. 
The clerk should remember this when trying to convince the cus¬ 
tomer that the suit he is buying is of high grade. 

Sixty-four Operations on Coat. After the “fitting” operation 
there are sixty-three separate operations through which the coat 
passes before it is finished—sixty-four in all. These operations are 
all technical and are enumerated here in order by their technical 
name, as a matter of interest, not as material for clerk argument. 
They are all details of putting together the parts of the coat, vest, 
or trousers: 


1. Fitting 

2. Pocket-making 

3. Joining 

4. Underpressing 

5. Making canvas and collar 

6. Baste canvas 

7. Tack pockets 

8. Pad lapels 

9. Baste edge Stay 

10. Fell edge stay 

11. Lining-making 

12. First basting 

13. Edge-seaming 

14. Edge-basting 

15. Second basting 

16. Sleeve-making (machine) 

17. Sleeve-making (hand) 

18. Sleeve, collar, shd. seams 

19. Shoulder-basting 

20. Shaping collar 

21. Put on top collar 

22. Fell L in label hng. 


22)^. Felling silk lining 

23. Edge-stitching 

24. Buttonholes 

25. Pulling basting 

26. Pressing off 

27. Butt and ticket 

28. Quilted shoulder 

29. Brushing 

30. Baste pleats 

31. Open vent, sleeve 

32. Baste silk fog 

33. Serge sleeve 

34. Basting velvet collar 

35. Back skirt 

36. Pad collar 

37. Fell velvet collar 

38. Baste outside breast pocket 

39. Baste bell pockets 

40. Cuff-making 

41. Felled edges 

42. Fell slash pockets 

43. Fell silk facing 


RETAIL BUYING 


49. Piping seams 

50. Fitting machine plds. 

51. Piping bell pockets 

52. Buttonholes on sleeves 

53. Stitching armholes 


46. Put on under-collar 

47. Stitch under-collar 

48. Hand canvas 


44. Baste lap., fell ed. 

45. Private st. edge 


54. Shoulder seams 

55. Strap seams, body 

56. Strap seams on sleeve 

57. Catching down edge 

58. Sewing around pockets 

59. Baste sides 34 Id. scks. 

60. Tacking flies 

61. After pressing 

62. Armhole pieces 34 Id. coats 

63. Basting fly 


64. Stitching fly 


Between the cloth and the lining of a coat are found the felt 
padding, the haircloth, and the canvas, all materials which hold 
the coat together and make it keep its shape. The vital point is 
this: In a coat made conscientiously each part is pressed as it is 
put on. In other words, the felt is pressed, then, when the hair¬ 
cloth is joined to it, the seam is pressed again; when the canvas 
is put on the seam is again pressed, and so on until the coat is 
finished and receives its final pressing before going to the drying- 
room, where it is hung up on a coat-hanger for twenty-four hours or 
more. 

In the cheaply made suit the parts are all thrown together and 
pressed once into shape—a shape that will hold only temporarily. 

Finishing and Examining , Now the finished garment goes to 
the examining department. Here it is subjected to the keen eyes 
and expert scrutiny of a force of men who see that every step in 
the making process has been faithfully and accurately carried out. 
Every operation of every tailor is examined and checked up. 

This is a most important department and a good clothing manu¬ 
facturer is known by the skill and conscientious care with which 
his finished garments are examined. 

Suppose an examiner is going over a just-finished coat. He 
looks for defects in workmanship, in proportion; he looks for 
stains, spots, or flaws in the cloth or lining. He finds a sleeve too 
long or badly sewed; he finds a pocket is put in crooked. He pastes 
a piece of paper at the flaw. It reads: “Sleeve open,” or, “Pocket 
not straight,” or, “Buttonhole not finished,” and so on. 

When the defects are all discovered and marked, the garment 
is sent to the busheling department, where the defects are corrected, 


184 


INSTRUCTION TO SALESPEOPLE 


by skilled workmen. Then the garment or suit is taken to the 
stock-room and is made ready for shipment to the retailer. 

Here the manufacturer leaves off and the clothing clerk begins . 1 


Furniture 


The following questions will serve as a type of the information 
which should be had by the furniture salesman. It will apply to 
any piece of furniture. 

(«) Of what wood the piece is constructed, and the principal char¬ 
acteristics of the various kinds. 

( 6 ) Reasons why the wood used is the best suited for that kind of 
furniture. 

(c) Construction, its special features and workmanship. 

(d) Is it solid, veneered, or imitation? 

(e) Points of excellence of each kind. 

(/) Relative value of each kind. 

(< 7 ) Durability and serviceability. 

(h) Finish, gloss, rubbed, or dull. 

( l ) Advantages of the different finishes. 

(j) Glass and trimmings, quality and looks. 

(k) Appearance or beauty of shape and what makes or mars it. 

(J) Prevailing style in use. 

(m) Price and reasons for it. 

(n) Price as compared with that of competitors. 


Linoleum 

I. Where the stock is located in the store, both the reserve 
and active stock. 

1. Quantity on hand of the various grades; only the approximate 

amount is necessary. 

2. Patterns in stock. 

3. Widths in stock. 

4. Cost and selling price of each piece. 

5. The manufacturer of each piece and where it is made. 


1 Taken from Dry Goods Economist by special permission. 

185 


RETAIL BUYING 


II. The salesman should be familiar with the selling-methods 
of the house, cash or instalment. Whether or not an extra 
charge is made for laying. 

III. The salesman must know linoleum. Since this commodity 
is composed of ingredients collected from all over the world, 
a man who knows linoleum must have some technical knowl¬ 
edge and some familiarity with commercial geography. 

1. How is linoleum made; the stamped, granulated, and straight 

line inlaid. 

2 . What are the various materials entering into its production 

and where are they secured? 

3. How is it printed; how are the colors and designs produced? 

4. Factors affecting the supply and demand of these raw ma¬ 

terials. 

5. Should be able to tell something concerning the history of 

the product. 

6 . Wherein the superiority of particular brands lies. 

7. Should know and be able to make the customer understand 

the difference between linoleum and oilcloth or other 

substitutes. 

IV. The salesman must know how to cut linoleum so as to 
minimize wastes from matching. Should be able to figure 
the price accurately, and to take accurate measurements. 

V. The salesman should know for what a particular grade 
or pattern is best adapted. 

VI. He should be able to suggest new uses. For instance, in 
Europe linoleum is used in practically every room of the 
house. If possible the salesman should provide himself with 
pictures showing the various uses of the product which are 
unfamiliar and new to the American consumer. 

VII. He should have certain talking-points, and these organized 
so that he may talk his product intelligently. Take, for 
example, the sanitary advantages of linoleum, the care of 
linoleum—how its life may be prolonged. 

With this knowledge, the salesman should be able to de¬ 
liver an interesting as well as instructive lecture on linoleum. 
Such a lecture is unnecessary every time he shows the prod- 
186 


INSTRUCTION TO SALESPEOPLE 


uct, but there are many instances where just such a talk will 
“take” with the customer. This information will enable 
the salesman to inspire confidence in the mind of his pros¬ 
pect; a man who knows his business can always command 
a hearing. Yet with this knowledge there is one more thing 
requisite to a good salesman, and that is: 

VIII. The salesman must know his customer, or must find him 
out. This will assist him in planning his attack. 

Shall the salesman appeal to the saving instinct? Shall 
he make an appeal to the esthetic sense? Or shall he talk 
quality and durability? 

1 . The salesman should know something of the financial ability 

of the prospect. 

2. Something of the prospect’s tastes, his habits, and his home 

life. 

3. Has the prospect bought any linoleum recently from the 

salesman’s house or a competitor? If so, was the pur¬ 
chase satisfactory? 


Coffee 

Raised in Brazil, Venezuela, Colombia, Bolivia (this is sup¬ 
posed to be the best quality of coffee produced), Peru, Guatemala, 
Jamaica, Arabia, India, British Central Africa, Ceylon, and Dutch 
East Indies (Sumatra, Celebes, and Borneo are known as Java prod¬ 
uce). 

Plant grows to eighteen feet in height and is dark green in 
color. 

The fruit, or so-called “cherries,” are at first a dark green, but 
as they ripen gradually change to yellow and then to red. The 
outer portion of the fruit is fleshy, like a cherry. Each fruit con¬ 
tains two seeds, covered in turn by a dry, smooth, straw-colored 
husk, known as “parchment.” Between each seed and the parch¬ 
ment is a thin covering known as “silver skin.” In Brazil there is a 
very rare variety known as Hybrico-coffee, the fruit of which con¬ 
tains four or six seeds. 

Picking.—Ripe cherries are stripped from the branches by 
hand. 


187 


RETAIL BUYING 

Preparation.—Both the dry method and the wet method are 
used. 

Dry Method.—Fruit is allowed to dry and ferment. May be 
stored and the hulling done at some future time. 

Wet Method.—Fruit dumped in large tanks of water. Ripe 
cherries sink to the bottom, while unripe and bad fruit float on 
surface. Ripe cherries are carried from tanks, by means of pipes, 
to pulping-machine. 

Pulping.—Cherries are reduced to a pulp by a revolving cylinder. 
This mixture is conveyed to water-vats, where seed sink and the 
pulp rises to the top. 

Fermentation.—Seed are allowed to ferment for forty-eight 
hours. 

Washing. 

Drying. 

Peeling and winnowing.—A simple rubbing process gets rid of 
the silver skin. 

Sizing.—To secure uniformity in size. 

Examining.—Taking out any defective seed. 

Packing. 

Shipping. 

Roasting. 

Glazing. 

Blending. 

Grinding. 

The stimulating and refreshing action of coffee is mainly due to 
the presence of caffeine and volatile oil. 


Chicory 

Chicory is prepared from the fleshy roots of Cichorium intybus, 
a plant closely resembling lettuce, and found wild throughout 
Europe, North Africa, Siberia, and Northern India. Up to the 
European War the great bulk of the present day came from Belgium. 

A simple test whereby to detect the presence of chicory when 
mixed with ground coffee is to put a little of the ground material 
in a glass of water. Coffee remains hard and floats on the surface 
for a long time; chicory soon softens and sinks, coloring the water 
more or less brown. 

Other substitutes found in coffee.—These vary much, including 

188 


INSTRUCTION TO SALESPEOPLE 


cereals, sawdust, bark, cacao husks, acorns, figs, lupine, peas, 
beans, and even baked liver. 


Tea 

Tea is prepared from the young leaves of the tea plant, Camelia 
thea. 

Introduced from China about 1657. Produced by India, China, 
Ceylon, Japan, and Java. 

The leaves are picked from the plant about April 1st. The 
leaf-buds are just beginning to form. This first picking produces 
the finest quality of tea. The leaves are picked every three weeks 
for, possibly, four pickings. The last picking produces poor quality 
of tea. 

Green and black tea may be produced from the same plant. 

Green tea.—The leaves are cured as soon as plucked, while green. 

Black tea.—The leaves are allowed to wilt and ferment before 
curing. 

Method of curing.—The tea-leaves are placed in shallow, cir¬ 
cular pans and placed in ovens. The heat causes the leaves to 
crack and become moist. The leaves are placed on bamboo tables 
in this pliable condition. Men rub the leaves between their hands, 
as a baker would work dough. Moisture is pressed out. 

Baked.—The leaves are baked. This causes the leaves to lose 
moisture, to twist and curl. 

Sorting. 

Packing. 

Coal 

Facts a salesman should know about anthracite coal: 

The best grade of anthracite contains about 91 per cent, carbon 
and 4 per cent, volatile combustible matter, with a very low per¬ 
centage of ash. Burns regularly and evenly with an intense heat. 
It is bright, clean, well prepared over roller screens, and free from 
slate and stone. It comes in the following sizes: 

Egg and stove are used in large, hot-air and hot-water or steam 
furnaces, and with pea coal for banking. 

Stove coal is excellent for smaller furnaces, used with buck¬ 
wheat for banking. 

Stove and nut or nut alone is used in magazine stoves. 

189 


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Pea coal is excellent for ranges and little heaters, but requires 
lots of draught on account of gas. 

Hard coal is cheapest in April, and the price raises ten cents per 
month for five consecutive months. 


Sources of Information on Merchandise 

The following list of publications, issued by manufacturers, shows 
the kind of descriptive material which can be obtained by the buyer: 

Books.— The Story of the Making of a Book. Charles Scribner’s 
Sons, New York City. 

Pencils.— Pencil Geography. Joseph Dixon Crucible Company, 
Jersey City, N. J. 

Linoleum.— As Told in the Store. Armstrong Cork Company, 
Pittsburgh, Pa. 

Wool and Cotton.— Textiles, by Paul H. Nystrom. D. Appleton 
& Co. 

Leather.— The History of Tanning. Pfister & Vogel Leather 
Co., Milwaukee, Wis. 

Rubber.— Rubber from Forest to Foot. United States Rubber 
Company, Fifty-eighth Street and Broadway, New York City. 

Plate Glass.— The Making of Plate Glass. Pittsburgh Plate Glass 
Company, Pittsburgh, Pa. 

Flour.— The Wheat and Flour Primer. Washburn-Crosby Com¬ 
pany, Minneapolis, Minn. 

Soap.— The Larkin Idea; Its Home. Larkin Company, Buffalo, 
N. Y. 

Sugar.— Some Interesting Facts About Sugar. American Sugar 
Refining Company, 117 Wall Street, New York City. 

Tapioca.— The Story of Tapioca. Minute Tapioca Company, 
Orange, Mass. 

Soups.— Franco-American Soups; How They Are Made in a 
Model Establishment. Franco-American Food Company, Jersey 
City Heights, N. J. 

Fish.—Bureau of Chemistry, Washington, D. C. 

Binder Twine Industry. The Story of Bread. Harvest Scenes 
of the World. International Harvester Company, Harvester Build¬ 
ing, Chicago, Ill. 

The Man Who Didn’t Know When He Had Failed. Carborundum 
Company, Niagara Falls, N. Y. 

190 


INSTRUCTION TO SALESPEOPLE 


Cork; Being the Story of the Origin of Cork. Armstrong Cork 
Company, Pittsburgh, Pa. 

Pictures of Cotton and Woolen Manufacturing. Chamber of 
Commerce, Manchester, N. H. 

Preparation of the Cod and Other Salt Fish for the Market. Bureau 
of Chemistry, Washington, D. C. 

Hemp, by Lyster H. Dewey. Department of Agriculture, 
Washington, D. C. 

Linen, Jute, and Hemp Industries in the United Kingdom. Bureau 
of Foreign and Domestic Commerce, Washington, D. C. 

Lumber. The Pine Cone. 1014 Germania Life Building, St. 
Paul, Minn. 

The Making of a Great Newspaper. New York World, New York. 

Potash Industry. German Kali Works, McCormick Building, 
Chicago, Ill. 

Rice and Rice Cookery, by Miriam Birdseye. The Rice Millers’ 
Association, Room 209, Kyle Building, Beaumont, Texas. 

Salmon Data. Salmon Canners’ Association, Seattle, Wash. 

The Silk Industry; from the Worm to the Wearer. M. Heminway 
& Sons Silk Co., 890 Broadway, New York City. 

Silk; Its Origin, Culture, and Manufacture. Corticelli Silk Mills, 
Florence, Mass. 

Sugar-cane and Syrup-making. Agricultural Experiment Station, 
Gainesville, Fla. 

History of Tanning. Pfister & Vogel Leather Co., Milwaukee 
Wis. 

Vanilla. Joseph Burnett Company, 36 India Street, Boston 
Mass. 


XIV 


CO-OPERATION IN ADVERTISING AND DISPLAYS 

The Buyer’s Responsibility in the Advertising. Adver¬ 
tising is a direct appeal to the public—a method used to 
create public sentiment favorable to a retail store, to draw 
trade to the store, and to make customers of it as well as 
satisfied purchasers. For the purpose of having the respon¬ 
sibility of this work rest upon one individual, an advertising- 
manager is usually engaged. But of course there are many 
thousands of small stores where the advertising is handled 
by the proprietor or manager, and most frequently by the 
person who does the buying. 

Whether a store has an advertising-man or not, the buyers 
should be able to write clear, concise, and convincing descrip¬ 
tions of the various lines they buy. In a large store having 
several buyers each should co-operate with the advertising- 
man in the writing of copy for advertising their particular 
lines. In its last analysis, the buyer is closer to the product 
which he buys than any one else in the store. For this reason 
he can readity furnish the advertising-man with the talking- 
points of his merchandise with this viewpoint in mind. Thus 
his help proves of inestimable value to the advertising-man 
who works the material over and writes it up according to 
the accepted principles of good advertising copy. 

The Advertising-man’s Responsibility to the Buyer. 
Likewise there is an obligation on the part of the advertising- 

192 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


manager to reciprocate. He should take the buyers of the 
store into his confidence and enlighten them on the store’s 
advertising appropriation and what disposition is to be made 
of it. He should explain the reasons for using certain medi¬ 
ums, and, in fact, give the buyers a liberal education in the 
store’s advertising methods. Where such a spirit of co¬ 
operation exists little friction will arise between the buying 
and selling ends of the business. There will be a sympathetic 
attitude to take its place. The buyer will know the nature 
of the advertising-man’s problems, and vice versa. 

It is not feasible to attempt in this volume a discussion 
of the principles of advertising, for the subject requires a 
full volume elsewhere in this series. The author must there¬ 
fore be content with this brief discussion of the necessity 
that the buyer should be familiar with the fundamentals 
of the subject, and thus be able to write simple copy, as a 
basis of the advertising-manager’s work, or for actual use 
in case there is no one on the store’s force assigned to the 
advertising. 

Co-operation in Display Work. In the case of the in¬ 
terior and window displays the relation of the buyer is even 
more close, and consequently many stores which have a 
separate executive for the publicity work depend upon the 
one who buys each line of goods, with his clerks, to see to the 
displays. Fortunately the subject is not so intricate as ad¬ 
vertising, so that it may be more readily learned by one who 
knows merchandise and merchandizing. Consequently it 
has seemed to the author feasible to cover the general prin¬ 
ciples in this chapter, both from the standpoint of co-opera¬ 
tion with the display-manager, or “window-trimmer,” as 
he is more commonly called, and from that of display work 
on the part of the buyer who must look after his own dis¬ 
plays with the assistance of his clerks. 

The Value of Good Displays. The old adage, “ Goods 
13 193 


RETAIL BUYING 


well displayed are half sold,” has certainly been proved time 
and again by the department-store system. Every student 
of business appreciates that suggestion plays a very important 
part in the scheme of merchandizing. How many times have 
you gone shopping, with a single purchase in mind, and re¬ 
turned with a number of purchases? The commodity needed 
may have been coffee, but you found fresh fruit, cheese, 
or cookies so attractively displayed that your mouth watered 
for a taste of them. Consequently additional purchases were 
made. This merchandise may have been displayed in either 
the windows or in the interior of the store. 

The windows, the more important of the two, are used, 
with the assistance of advertising, to draw the people into 
the store. They provide the first impression which the store 
makes upon the public. For this reason they must bespeak 
the character and policies of the men at the head of the es¬ 
tablishment, as well as the quality and character of the mer¬ 
chandise to be seen in the interior of the store. These win¬ 
dows work both night and day, attracting the attention of 
old and new customers and sometimes creating a desire for 
the merchandise, thus performing the first two steps of the 
sale. They make it possible for the salespeople on the inside 
of the store to complete the sale with less effort. 

The right buyer is an inspiration to the window-trimmer. 
In fact, they work together on an equality basis, each being 
capable of assisting the other. The buyer’s sympathetic ear, 
together with his timely comments—most buyers having 
been through the mill and been advanced step by step— 
do much to develop a trimmer and to get the most out of 
his capabilities. Buyers have the opportunity of seeing the 
best displays the city stores have to offer, and these ideas, 
together with ideas for displaying the various kinds of mer¬ 
chandise purchased, may be imparted and used advantage¬ 
ously by the trimmer. 


194 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


The Trimmer. The window-trimmer, with the help of 
the buyer, is responsible for the success or failure of the 
windows. All stores, both large and small, should have some 
one in charge of the windows. The larger stores can afford a 
display-manager with a force of men who do nothing but the 
actual trimming of the windows, while the smaller store has 
usually only one man in charge of the displays. If this is not 
possible, the store should have at least a man who devotes 
part time and who receives extra pay for this work, as trim¬ 
ming-work must, as a rule, be done evenings after the store 
closes. As a rule, the trimmer is a very sensitive fellow who 
will work his head off if given the proper encouragement. A 
little flattery and encouragement when presenting new ideas, 
as much freedom of action as possible, and liberal payment 
for his services will do more to effect successful selling windows 
than anything else. The artistic touch is required of the 
trimmer. Some develop more rapidly than others, while a 
few seem to have inherited the art. Again, some men will 
never make good trimmers. The difference between the 
good and the poor trimmer is a difference of dollars and cents 
in business. The good trimmer is an asset and not an ex¬ 
pense, as some few merchants know very well. 

Value of Windows. A small Kentucky grocery-store 
values its windows by the amount of merchandise the window 
sells, both direct and indirect. This store claims that on 
one particular Saturday the window sold $90 worth of 
oranges at 60 cents a peck. Consequently, on this day the 
window was worth $90. However, only $5 was charged to 
the fruit department, that being the Saturday rate per win¬ 
dow, and $3 for week-days and Sunday. Some time later 
this same store made a strong run on peaches. They were 
advertised and displayed throughout the store, but no 
window was used, as the store was remodeling its front. To 
offset this, however, the entire front of the store remained 

195 


RETAIL BUYING 


open during the day. As a result only $26 worth of the fruit 
was sold. This proved to this particular merchant the dol- 
lars-and-cents value of his windows, and showed conclusively 
that they actually brought buyers into the store. 

The city department store, as well as all other systematized 
and properly managed stores, makes use of some such sys¬ 
tem as the following: A certain rental, gauged according to 
the size and location of the window, is charged to each depart¬ 
ment making use of the window space, this amount being 
credited to the window-trimming department to take care of 
the salaries of trimmers, cost of fixtures, etc. The exact 
amount charged may vary according to the size of the town or 
city, the clientele, and the character of merchandise handled. 
In a town of approximately twenty thousand population 
the rental should be about twenty cents per foot of frontage 
a day, and each foot should sell not less than three dollars’ 
worth of merchandise, by both direct and indirect sales. 

The actual results of a series of seven displays of various 
kinds of merchandise showed, for instance, that in a sale 
display of a commodity retailing at 98 cents, one window sold 
sixty-odd dollars during the first day. No advertising had 
been done to herald the sale, as it was strictly a window test. 
Of course, with windows planned mainly as artistic displays, 
and particularly at spring and fall openings the entire value 
lies in the indirect sales which will be brought about through 
the window. 

Artistic Windows vs. Merchandizing Windows. The 
windows of the store were intended primarily for the ex¬ 
ploitation of merchandise, the fundamental purpose being to 
attract attention to the merchandise shown and to assist 
in effecting a sale. Some thirty or forty years ago, Mar¬ 
shall Field & Co., in order to further the Field idea of 
merchandizing, began a system of artistic and spectacular 
window-trimming. This idea, in a much smaller way, was 

196 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


taken up by stores over the entire country, many losing sight 
of the fact that theirs was entirely a different type of store. 

The larger New York City stores have been known to 
have curtains drawn on windows a full week, making prep¬ 
arations for opening windows. When the curtains are 
finally raised, beautiful windows, which attract much at¬ 
tention, are disclosed. In many cases, however, the back¬ 
grounds, fixtures, and general atmosphere overshadow the 
merchandise shown. Stores catering to the masses, as well 
as those catering to the most exclusive trade, have been 
guilty of this act A question undecided is whether or not 
the little merchandise shown makes the display worth while. 
It is true that well-known authorities have agreed that 
artistic windows are permissible during fall or spring open¬ 
ings, but enough merchandise should always be shown so 
that the prospective customer can get the idea that the 
window was put in for the purpose of attracting attention 
to the merchandise. 

Strictly merchandizing windows, although artistic and 
attractive in arrangement, should be featured at all times 
by the stores catering to the general public. This idea 
should also be uppermost in mind with those stores catering 
to the most exclusive trade. Customers, as a rule, are more 
interested in merchandise than in artistic displays. 

Backgrounds. The background or setting is used to em¬ 
phasize the merchandise. It should always be in harmony 
with the merchandise shown as well as with the proportions 
of the window in which it is placed, and it should be planned 
with the idea of contributing value to what is shown in con¬ 
nection with it. The height should be from six to ten feet, 
depending upon the height of the ceiling and the size of the 
window. High ceilings should always be used wherever 
possible. Very elaborate backgrounds frequently detract 
from the sale value of the displayed merchandise. 

197 


RETAIL BUYING 


There are three classes of backgrounds: permanent, tem¬ 
porary, and individual. The permanent background consists 
of hardwood, panel-wood, and mirrors. Hardwood and 
panel-wood are considered best They frequently appeal 
strongly to the management on the score of readiness and 
economy, and they may also be covered readily for special 
displays. The colors and woods used are oak, natural and 
stained in dark brown, dark green, dark gray, and weathered 
oak; mahogany, walnut, cherry, maple, stained in light 
gray; and white enamel. Any of these may be finished in 
plain, mission, or colonial style. 

Mirrored backgrounds have been used a great deal in the 
past, but many well-informed merchandizing men agree that 
they are undesirable. In using mirrors it is almost impossible 
to get the desired emphasis on any article. There is a con¬ 
flict for the onlooker’s attention between the merchandise 
shown and the reflections from passing people and objects 
which appear in the mirror. 

Temporary backgrounds may be covered with any fabric 
from burlap to velvet, pleated and puffed cheese-cloth and 
tarlatan, cotton flannel, serpentine crepe, silk, satin, plush, 
velours, scenic effects on sized canvas, or domestic masonry 
effects, latticework, etc. It may be either a painted scene, 
an imitation of nature, or an ordinary covering for the back 
of the window. White goods require a dark backing, and 
dark goods require a light background. Of course there are 
exceptions. Pure white goods are often shown very effec¬ 
tively with an ivory or a delicately tinted background. 

Individual backgrounds are special backgrounds required 
for special occasions—a certain type of background which 
is required to bring out the desirable points and uses of the 
merchandise. 

Floorings. The floor of the window should be about 
fifteen inches above the level of the sidewalk, and should 

198 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


correspond to the background and the display. They may 
be classed and treated just as backgrounds—namely, per¬ 
manent, temporary, and individual. 

Amount of Merchandise to Be Shown. One of the most 
interesting and puzzling subjects in window-trimming is the 
amount of merchandise which should be shown in a window. 
Every store, both large and small, seems to take a most 
definite stand with regard to the subject. One makes a prac¬ 
tice of showing the least possible amount of merchandise, ad¬ 
vocating that the entire attention of the passers-by will be 
held and that the pedestrians will be enabled to take in the 
entire window at a glance. When the clientele of the store is 
better appealed to by such a display it undoubtedly proves 
effective, but in most cases it is a useless waste of window 
space. 

A second type of store makes a practice of showing only 
decorative windows. The backgrounds are the most artistic 
to be had, and only the higher-class merchandise is shown. 
A display of this sort can be used very advantageously 
during the spring and fall openings, and then only for a few 
days. Critics contend that the decorations overshadow the 
merchandise. 

A third store makes a practice of showing all the mer¬ 
chandise it is possible to crowd into the window. In fact, 
many stores of this class have two-thirds of their stock in 
the window. The result is that the entire display presents 
a jumbled mass, totally lacking in character and effective¬ 
ness. There is so much merchandise displayed that no at¬ 
tention can be given to any particular object. The idea of 
the display is, of course, to convey the idea to the prospective 
customer that a varied selection and an unlimited amount of 
stock are obtainable. This type of display is a much poorer 
form of merchandizing than that of the first store described, 

and is fortunately becoming more rare each year. 

199 


RETAIL BUYING 


The fourth type of store uses ideal merchandizing methods. 
This ideal is the “happy medium” of the first two types of 
displays mentioned. Clean, neat displays, with just enough 
fresh, crisp merchandise to allow the passers-by to take it in 
while passing, are shown. The idea is to make more frequent 
changes and get the public into the habit of looking for the 
newer goods. Such a type of window display will sell more 
merchandise than all of the others put together, and is 
much more attractive from a business standpoint. 

However, after all, most stores use those methods pre¬ 
ferred by their responsible officials, who are governed by 
their personal opinions. These officials may be totally lack¬ 
ing in experience and have absolutely no knowledge of what 
type of windows are best suited to the needs of the store, 
but, nevertheless, whatever they dictate is carried into effect. 

Purpose of the Display. Each display should have a real 
purpose which suggests an idea to the one who is viewing the 
display. For example, in the showing of a traveling-bag, 
traveling accessories^and articles usually carried when travel¬ 
ing should be shown. Every one likes to travel. Conse¬ 
quently, all passers-by will give their attention to the display. 
The traveling-bag, with its artistically arranged group of 
shirts, pajamas, socks, and the like, brings to the mind of the 
prospect the desire for some of the articles shown. The display 
points out that they would be needed on the anticipated trip. 

Good merchandizers can well make one commodity sug¬ 
gest the sale of another. In fact, some cases develop in the 
sale of complete outfits. All persons have that desire to 
possess. Clever salesmanship exhibited either by salespeople 
or in the displaying of merchandise does much to bring out 
this instinct. 

Selection of Merchandise to Be Shown. There are, how¬ 
ever, certain kinds of merchandise which cannot be shown 
together. For instance, imagine a saw being shown with a 

200 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


head of cabbage, lard with candy, garden tools with party 
dresses, or heavy canvas with delicate chiffons. Cabbage 
would go well with other fresh vegetables, lard would increase 
the value of a display of flour, meats, or other fats. Garden 
tools would suggest the sale of lawn furniture, garden seed, 
and flower-pots. Party dresses would suggest silk hosiery, 
gloves, head-dressings, evening slippers, and opera coats. In 
fact, any commodity can be displayed well with another, 
provided they are used together, of the same class, one sug¬ 
gesting the use of the other. 

Color Harmony. In executing a trim, coloring is one of 
the principal subjects to be considered. Any person is capable 
of piling a jumbled mass of colors into a window, with one 
killing the other. But an expert is required to trim a window 
so that each color stands out, one helping to bring out the 
other, and all blending together into a harmonious whole. 
The principles applied by the painter when painting a 
picture are used by the skilled window-trimmer. Each 
piece used is handled as a part of the whole scheme. 
There must be something which binds each decorative unit 
into a systematic whole. 

It is said that nature suggests excellent color combinations 
and contrasts. For example, a border of the green of the 
apple and peach will add materially to the appearance of the 
display. Spring calls for the cooler colors—white, black, 
gray, lavender, blue, etc.; while the fall and winter seasons 
require the warmer colors—brown, red, cream, yellow, etc. 

The following chart and color effects have been arranged 
with the idea of aiding the trimmer in making combinations: 

Color Combinations 

Gray Display — 

Pale blue, laurel green, heliotrope, old rose, pale green, orange, 
pink, wistaria, apricot, raspberry, and all shades of yellow. 

201 


RETAIL BUYING 


Brown Display — 

Cream, corn color, light yellow, ivory, maize, dark yellow, 
burnt orange, straw, champagne, peach, muskmelon, apricot, 
salmon pink, lemon, green, apple green, coral, old rose, helio¬ 
trope, amber, amethyst, emerald, topaz, turquoise, and any 
shade from cream to burnt orange. 

Moss-Green Display — 

Pale green, sulphur, pale pink, apricot, pale blue, heliotrope, 
old rose, salmon pink, black-and-white novelties, any of the 
jewel series (which are amber, amethyst, emerald, coral, 
turquoise, and topaz), any shade from cream to burnt orange, 
and any shade from champagne to muskmelon. 

Navy-Blue Display — 

Bright red, old rose, Nile green, pale blue, white, cream, ivory, 
pale yellow, light yellow, orange, burnt orange, black-and- 
white novelties, any shade from cream to burnt orange, and 
any shade from champagne to muskmelon. 

Red Display — 

Red in combinations of two or three different shades, white, 
cream, black, gold, silver, yellow, dark green, violet, chestnut, 
gray, pink, purple, copper, and russet. 

Purple Display — 

Purple in combinations of two or three different shades, white, 
cream, gold, orange, dark red, and dark green. 

Black Display — 

Yellow, pale blue, apricot, emerald, raspberry, turquoise, 
heliotrope, orange, gray, gold, brown, red, chestnut, copper, 
and olive green. 

Tan Display — 

Salmon pink, pale blue, pale green, apple green, light green, 
old rose, heliotrope, white, lavender, yellow, turquoise, and 
dash of black. 

Pink Display — 

White, yellow, light blue, tan, brown, Nile green, lavender, 
citron, gray, purple, and dark red. 

202 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


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203 


CHART OF COLOR CONTRASTS 















































RETAIL BUYING 


Yellow Display — 

White, light blue, violet, pink, buff, Copenhagen, dove, gray, 
copper, brown, dark purple, dark green, red, chestnut, and black. 

Orange Display — 

White, gray, blue, olive, russet, purple, red, maroon, green, 
and black. 

Olive Display — 

White, blue, orange, green, red, and black. 

Violet Display — 

Purple, red, buff, 3 ^ellow, white, blue, dark green, and black. 
White Display — 

Dove, gold, drab, buff, pea green, yellow, pink, orange, and blue. 
Light-Blue Display — 

Light green, pink, gray, golden brown, dark orange, and black. 
Buff Display — 

White, clay, yellow, orange, violet, brown, and red. 

Russet Display — 

White, yellow, violet, orange, red, and brown. 

Maroon Display — 

Orange and brown. 

Chestnut Display — 

Yellow, red, and black. 

Chocolate Display — 

Black, red, and all shades of brown. 

Citron Display — 

White, buff, yellow, and orange. 

Copper Display — 

Yellow, red, and black. 

Drab Display — 

White, yellow, red, and black. 

204 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


Dove Display — 

White, yellow, vermilion, and blue. 

Lavender Display — 

Tan, gray, and purple. 

Color Effects 

Place light colors at the back of the window, and dark colors at 
the front. 

Bright and loud colors should be separated from one another by 
a neutral color. 

Neutral colors are white, cream, light tan, gray, moss green, 
and black. 


Two-color Combinations for Ribbons 

Pink and heliotrope. 

Pale blue and pale green. 

Salmon pink and brown. 

Pale blue and dark blue. 

Violet and purple. 

Pale pink and pale blue. 

Champagne and muskmelon. 

Pale pink and pale yellow. 

Yellow and orange. 

Rusty brown and apricot. 

Heliotrope and plum. 

Old rose and pale gray. 

Pale blue and heliotrope. 

Pale blue and lavender. 

Any one color in two shades. 

Three-color Combinations for Ribbons 

Champagne, apricot, and rusty brown. 

Pale pink, pale blue, and pale green. 

Pale yellow, pale green, and pale blue. 

Light yellow, cream, and orange. 

Salmon pink, apricot, and muskmelon. 

Old rose, heliotrope, and pale blue. 


RETAIL BUYING 


Pale pink, heliotrope, and pale blue. 

Pale blue, green, and heliotrope. 

Any one color in three shades. Gold, silver, and black will 
harmonize with any color or combination of colors. 

Time. Displays are usually regulated according to seasons 
or the demand for merchandise. As a rule, there is a time 
to show all classes of merchandise, and when this time is past 
no amount of beautiful displays or price-cutting will move 
it. During the fall of 1916 a large store made a clever 
buy consisting of five gross of mince-meat choppers. A large 
window was used to display the commodity. Well-worded 
cards were used, together with a fair amount of newspaper 
space, to advertise the special price. The display was left 
in the window four days, and but two of the choppers sold. 
After returning the goods to its proper department, samples 
were ordered left on the counter, so that there could be no 
chance of a customer going without one had she intended 
making the purchase. Four weeks later, six days before 
Thanksgiving, the choppers began selling, and during the 
following three weeks practically all were sold. The display 
had been made out of season, and as a result the merchandise 
did not sell when displayed or advertised. It was fortunate, 
of course, that the showing was just before Thanksgiving 
instead of just after Christmas, because in that case the goods 
would no doubt have been carried over into the next season. 

For the benefit of those concerned the following chart 
has been prepared: 

January.' January clearance sale. 

January white-goods sale. 

(Push ready-to-wear and work sales for all they will 
produce.) 

February. Valentine’s Day (February 14th). 

Washington’s Birthday (February 22d). 

(Make preparations for the showing of spring mer¬ 
chandise.) 


206 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


March. 

April. 

May. 

June. 

July. 

August. 

September. 

October. 

November. 

December. 


St. Patrick’s Day. 

Spring opening (March 15th, or about three weeks 
before Easter). 

Easter. 

First spring clearance sales. 

(Introduce garden and lawn commodities, household 
goods, etc.) 

May Day (May 1st). 

Memorial Day (May 30th). 

(Furniture, upholstery, glassware, and sporting goods 
are in active demand. Summer goods need en¬ 
couragement.) 

Graduation. 

June weddings. 

June white sales (push summer goods). 

July 4th. 

Hot-weather sales. 

(Trunks, bags, and traveling accessories need atten¬ 
tion. Summer reduction sales begin.) 

Vacation sale. 

Traveler’s sale. 

(Summer sales are in order. Prepare for fall goods; 
introduce novelties.) 

Fall opening (September 15th to 30th). 

Labor Day. 

(Specialize on children’s goods for school. Ready-to- 
wear and millinery need much attention. Hammer 
housef urnishings.) 

Hallowe’en. 

Harvest sales. 

(Work piece-goods department. Keep ready-to-wear 
to the front.) 

Thanksgiving (last Thursday in month). 

(Introduce holiday goods. Give chinaware, linens, 
and cutlery preference.) 

Christmas. 

New Year’s. 

(Give holiday goods full swing. Push hosiery, neck¬ 
wear, and handkerchiefs. Hammer on expensive 
furs and ready-to-wear goods.) 

207 


RETAIL BUYING 


In villages and small cities, during the afternoon, the 
streets are crowded with busy shoppers who are anxiously 
taking in all the windows in hope of finding just what they 
need. The evening is given over to strolling and sight-seeing. 
Every one likes to wander around, looking into every shop 
window, taking in all the new things. For these reasons 
no window should be dark during the afternoon or evening. 
All trimming should be done in the early forenoon. A trim¬ 
mer can work at greater ease at that time, because there are 
fewer opportunities for interruption and there is less like¬ 
lihood of losing business because of drawn shades. 

Fixtures. Modern display fixtures are equally as im¬ 
portant as up-to-date selling equipment in the store. No 
one denies that proper equipment in the store means economy, 
for it helps the salespeople to serve more trade in a given 
time, and at the same time gives the customer more time 
to spend looking over the various stocks of the store. No 
merchant cares, however, to be continually spending money 
for fixtures. By purchasing standard fixtures at the be¬ 
ginning, and taking proper care of them as well as al¬ 
lowing a small amount each year for the purchase of 
additional equipment, a full supply of the best fixtures 
will continually be on hand. Many trimmers have orig¬ 
inal ideas with regard to certain kinds of fixtures which 
will produce best results. It is also possible to copy 
in the workshop many of the new-fad fixtures at a very 
small cost. 

Interior Displays. The windows having been filled with 
attractively displayed merchandise, the idea being to get 
the customer into the store, it is absolutely essential to back 
them up with good interior displays to assist the salespeople 
in making sales. Requirements for displays do not call for 
the mere placing of merchandise on counters, or in display- 
cases, without consideration of their arrangement. Well- 

208 


CO-OPERATION IN ADVERTISING AND DISPLAYS 


planned and executed displays are essential to modern mer¬ 
chandizing methods. 

Special displays should be made to meet each store festival. 
These displays are equally as essential as a new dress is to 
the blossoming debutante. The display should be carried 
out in keeping with the season and in harmony with the 
window displays. Numerous clever and catchy ideas which 
will attract attention may be carried out advantageously. 
For example, one store added to Christmas decorations of 
holly, cedar, and redwood rope by having hundreds of red 
cardboard birds hanging from the ceiling by silk threads 
as though flying through the air. The novelty of such ideas, 
as well as the low cost of executing, makes them worth while. 

Show-cards. The show-card is the silent salesman which 
announces to the public or directs their attention to the mer¬ 
chandise shown. It is necessary to every window as well as 
to every display in the interior of the store. The card aids 
by suggestive selling appeal. It saves time for both the cus¬ 
tomer and the salesperson, and reduces the opportunity for 
mistakes by announcing the sale price. The more carefully 
it is made, and neater the card, the better it makes the goods 
look in the eyes of the customer. 

Whether or not the price is to be shown on the window- 
card must be determined by the character of the store and 
the type of the clientele. The price-card would be a detri¬ 
ment in the window, during regular season, of an exclusive 
store catering to the elite; while the window of the down¬ 
town store, catering to the working-girls’ trade, would not 
be complete unless the price-cards were in a most conspicuous 
position. As a general thing, windows, other than special- 
sale windows and windows of stores catering to people who 
deem price more essential than quality, should not have 
price-cards. Style and quality are to be emphasized in the 
display in order to attract enough attention to cause the 

14 209 


RETAIL BUYING 


customer to come into the store to investigate. After the 
customer reaches the department and sees the commodity, 
and the salesperson has the opportunity of talking its good 
points, the price is given. Should the price of the article 
be too high, the salesperson has the opportunity of showing 
something else. Prices should always be shown in special- 
sale windows, regardless of the kind of store. 


XV 


THE BUYER AS A MERCHANT 

The Four Functions of the Buyer as a Merchant. The 
word “buyer” is an unfortunate one in many respects. 
Even department-manager isn’t much better, for it doesn’t 
signify all the position requires, and names have a psycho¬ 
logical effect. If a man is known as a buyer, he is likely to 
feel his job is buying only and that he must buy, buy, buy. 
As a matter of fact, the job has three functions: to buy, to 
sell, and to make a satisfactory profit. The training and 
title of the average buyer place undue emphasis upon the 
first of these primary functions, the selection of merchandise, 
and depreciate the remaining equally important duties. 

Now, if the buyer is to accomplish these three functions 
he must be a full-fledged merchant; for, after all, that is all 
the merchant does. He buys and sells merchandise so as to 
make a satisfactory profit, and he manipulates his stocks 
so as to secure the proper number of turnovers and leave 
the stock in good clean condition at the end of the season. 
The merchant is a constructionist; the buyer is an oppor¬ 
tunist. The trouble with many mercantile concerns, both 
wholesale and retail, is that they have too many buyers 
and too few merchants. 

The real buyer must know: 

1. How to sell goods himself. 

2. How to handle people. 

3. How to plan his merchandizing. 

4. How to buy. 


211 


RETAIL BUYING 


The Buyer as a Salesman. The buyer must have come up 
through the sales force if he is to be able to direct the sales 
activities of a department. No man can tell some one else 
how to do a thing which he has not already done himself. 
That’s the reason that in all successful retail houses the 
officers are recruited from the men who have come up 
through the ranks. It isn’t simply because they have borne 
the heat of the day and deserve the reward. It is mainly 
due to the fact that experience is a necessary qualification 
to success in the higher positions. And in no work is it 
so essential as in that of retailing, nor is there any line in 
which there is so little favoritism to relatives and so much 
reward for ability and experience as in retail merchandizing. 
You have to earn the job before you can earn the boss’s 
daughter. 

The Buyer as a Sales-manager. The second qualification 
is the ability to handle salespeople; for in most stores, even 
those having aisle-managers or floor-walkers, the greater part 
of the supervision of the sales force falls on the buyers. The 
buyer is really a sales-manager of his department, and as 
such must be able to teach and to lead his salespeople. There 
are some people in this world who have natural teaching 
ability. They seem to be born with a knack for explaining 
in a way to be really helpful. 

The Buyer as a Merchandizer. Next, the buyer must be 
able to merchandise according to plan. Every kind of busi¬ 
ness to-day is run by budget based upon a complete knowl¬ 
edge of all the factors. Retailers of the intensive type, such 
as chain stores and mail-order houses, invented the “mer¬ 
chandise plan.” Others are gradually adopting it in spite of 
those who maintain it can’t be done. Past performances 
serve as a good check, but do not serve as a fundamental 
basis, especially in such periods as we have had recently. 
Even an average experience of the past five or ten years is 

212 


THE BUYER AS A MERCHANT 


not a fundamental basis. Nor does it bring out the best in 
merchants. It leads either to complacency because of the 
ease with which a previous record can be beaten or resigna¬ 
tion because conditions have changed so that the previous 
record cannot be maintained. 

Merchandizing according to plan is correct because it is 
based on fundamental factors. It is merchandizing based on 
what the business of the house should be in quality, amount, 
and price-ranges rather than entirely on what it was the 
preceding year. 

Many retailers merchandize according to plan without 
realizing it, though perhaps not so accurately. One obstacle 
is that many do not understand the fundamental prin¬ 
ciples of pricing as affected by the net cost of merchandise, 
the conditions of competition, the turnover possibility, and 
the gross and maintained mark-up. Of course this is an 
integral element in the merchandise plan, for volume de¬ 
pends largely on price. In such cases it is the duty of the 
retailer himself, or of his merchandise-manager, if he has 
one, to train his buyers in connection with the development 
of a merchandise plan for each department, so that they 
understand all the elements affecting price, and so that they 
can handle them in relative proportions; for every change in 
mark-up has a corresponding effect on turnover, and it is 
sometimes a difficult problem to balance all the elements so 
as to bring about the best net results for the house and for 
the retailer. Always in this connection it must be re¬ 
membered that whatever is to the ultimate advantage of the 
consumer is likewise to the ultimate advantage of the re¬ 
tailer. So here are more elements to consider. 

The Buyer as a Buyer. Finally, the buyer must be a 
good judge of merchandise. In an address before the retail 
merchandise managers who are members of the National 
Retail Dry Goods Association, in October, 1916, Mr. Lew 

213 


RETAIL BUYING 


Hahn, editor of Women’s Wear, gave the three qualifications 
of good buying as follows: 

“Be fair; be courteous; be watchful. In any line of 
business it does not pay in the long run to resort to sharp 
practices, nor to be domineering and discourteous, and many 
retail buyers, who have not been mindful of this in the past, 
are now realizing it in this day of the sellers’ market. A 
buyer can be watchful of the interests of his department 
and his house and still be fair and courteous.” 

In the final analysis the qualities which go to make for 
success in the buyer or department-manager are common 
to all business. Take, for instance, sincerity. We all admire 
the man who looks us squarely in the eye, who believes sin¬ 
cerely in himself, his house, and his goods, and who is a red- 
blooded human being at the same time. Then there is the 
willingness to work hard. Any man who isn’t willing to do 
the work his job calls for, whether it requires eight hours a 
day or sixteen, will fail in spite of any ability he may have. 
But that necessitates that he shall work advantageously 
and economically. Too many buyers spend half their time 
doing work which an eight-dollar boy could do as well, and 
as a result have little time for planning. They are doing a 
lot of cheap work rather than a lot of work cheaply. 

All of this discussion leads back to the original statement 
—that the function of a buyer as a merchant is to buy mer¬ 
chandise according to a merchandise plan, to sell so as to 
make a satisfactory profit, and to manipulate his purchases 
so as to secure the proper number of turnovers and leave 
his stock in good condition at the end of the season. This 
is a big job for any man, for merchandizing is a life’s work, 
and it calls for the best efforts of a real merchant. Such a 
man is the ideal buyer. 


INDEX 


A 

Advance buying, 62. 

Advertising and displays, co-oper¬ 
ation in, 192. 

Advertising, buyer’s responsibility 
in, 192. 

Advertising-manager’s responsibil¬ 
ity to buyer, 192. 

Altman, Benjamin, 4. 
Arrangement of store, 160. 

Artistic windows {See Windows). 
Average stock, how to find, 136. 

B 

Backgrounds: 
individual, 198. 
in window displays, 197. 
mirrored, 198. 
requirements for, 197. 
temporary, 198. 

Bankrupt sales, 23. 

Beaver, tests for, 78. 

Brentano’s bookstore, use of “no 
counter plan,” 160. 
Bulletin-boards, 175. 

Business conditions, general, neces¬ 
sity for knowing, 12. 

Buyer: 

as a buyer, 213. 
as a merchandiser, 213. 
as a merchant, 211. 
as a salesman, 212. 
as a sales-manager, 212. 

Buyer, general qualities of, 5. 
Buyer’s responsibility in advertis¬ 
ing, 192. 

co-operation in display-work, 193. 


Buying, beginning the, 51. 

Buying exchange, 18. 

Buying market, the necessity for 
knowing, 7. 

Buying methods: 

fundamental to all retailing, 4. 
necessity for food-buying, 4. 
Buying of friends, 27 
Buying practice, 41. 

Buying process, 54. 

Buying syndicate, 24. 

J 

C 

Cancellations, 63. 

Canned fish, determining qualities, 

86 . 

Canned foods, determining quali¬ 
ties, 85. 

Canned fruits, determining quali¬ 
ties, 85. 

Canned vegetables, determining 
qualities, 85. 

Capital turnover: 
definition of, 133. 
illustration, 134 
method of computing, 134. 
Cartons, how to keep in condition, 
169. 

Cereals, determining qualities, 86. 
Chain store: 

buying power of, 102. 
comparison with independent 
store, 103. 
competition of, 101. 

Chicory, tests for presence in 
coffee, 188. 

Christmas, buying for, 96. 
Clearance prices, 60, 


215 


RETAIL BUYING 


Clearance sales, leaders for, 94. 
Close-outs, 23. 

Clothing—talking-points for sales¬ 
men, 177. 

Coal—talking-points for salesmen, 
189. 

Coffee and tea, determining quali¬ 
ties of, 84. 

Coffee—talking-points for sales¬ 
men, 187. 

Color combinations, 201. 

chart for contrasting, 203. 

Color harmony in window displays, 

201 . 

Commission merchant, 18. 
Competition: 
analysis of, 44. 
buying to meet, 97. 
chain store, 101. 
co-operating with, 98. 
how to meet large city competi¬ 
tion, 100. 
mail-order, 103. 
necessity for knowing, 5. 
value of, 97. 

Concentration sales, 94. 

Coney, tests for, 78. 

Continuous inventory: 

types of merchandise adapted 
to, 147. 

stock sheet, and tag for, 147. 
system for specialty shop, 152. 
Co-operation in advertising and 
displays, 192. 

Cost or selling price, use in profit 
computations, 115. 

Costs, know your, 112. 

Cotton: 

description of, 68. 
mercerized, 71. 
tests for, 69. 

Counter displays, how to arrange, 
168. 

“Counts,” 172. 

D 

Deliveries, 58. 

Discounts: 
extra, 58. 
terms and, 60. 


Displays, special, 208. 
Display work: 
buyer’s co-operation, 193. 
value of food, 193. 
Distributing: 
agencies for, 15. 
plan of, 15. 


E 

Eaton, T., 4. 

Exclusive agencies, 37. 

comparison with advertised 
brands, 39. 

Expenses, how to figure, 110. 


F 

Favors from salesmen, 65. 

Fernley, Thomas A., 115. 

Fiber, quality of, 71. 

tests for, 71. 

Figuring profit, 116. 

Percentage of mark-up, 119. 
Figuring stock-turns, methods of, 
126. 

Fixtures for window display, 208. 
how to keep in condition, 168. 
store, 155. 

Floorings, 198. 

Fox, tests for, 81. 

Free deals, 58. 

Frequency of buying-trips, 52. 
Fruits: 
fresh, 85. 
dried, 86. 

Furniture—talking-points for sales¬ 
men, 185. 

Furs: 

buying, 83. 
classes of, 73. 
dyed, 74. 
long-haired, 74. 
natural, 74. 
short-haired, 73. 
tests of, 73. 
tests of leather, 74. 
wearing quality of, 81. 


216 


INDEX 


G 

Groceries, 84. 

Gross and net profit, 114. 

H 

Haberdashery, method of stock¬ 
recording for, 170. 

Hahn, Lew, 214. 

Hardware, how to increase turn¬ 
over, 125. 

Hart, Schaffner & Marx, publi¬ 
cations for salespeople, 173. 

Holidays, buying for, 96. 

Human nature necessity for know¬ 
ing, 12. 

I 

Instruction to salespeople, 173. 

Interior displays, 208. 
special, 209. 

Inventory, the, 138. 
how to take, 140. 
importance of, 138. 
preparing for, 139. 
purpose of, 138. 
value of merchandise at, 139. 

J 

Jobber, the: 

as distributor, 16. 
manufacturing, 17. 
original function of, 16. 
semi, 17. 

“Jobs”: 
finding, 91. 
handling, 90. 

K 

“Knocking,” 99. 

L 

Leaders for clearance sales, 94. 

Liggett store, use of no-counter 
plan, 160. 

Linen: 

description of, 70, 
tests for, 70. 


Local needs, necessity for know¬ 
ing, 5. 

Lynx, tests for, 80. 

M 

Mail-order houses: 
buying methods of, 104. 
competition of, 103. 
retailers' advantage over, 106. 
Mail, use of, 22. 

Manufacturer, function of, 15. 
Manufacturer’s name, value of, 
30. 

Marketing methods, necessity for 
knowing, 8. 

Market, the: 
frequency of visiting, 52. 
preparation for visiting, 52. 
seeing what well-dressed people 
wear, 53. 
sizing up, 49. 
visiting the, 49. 

Mark-up, methods of figuring, 118. 

ratio, 120. 

Marshall Field, 4. 

Marshall Field & Co., importance 
of store fixtures, 156. 
Mens-wear departments, location 
in store, 161. 

Merchandise: 

amount to be shown in windows, 
199. 

necessity for knowing, 7. 
selection of kind to be shown in 
windows, 200. 

Merchandise, branded: 
advantages of, 29. 
comparison with exclusive agen¬ 
cies, 37. 

definition of, 29. 

Merchandise, sources of informa¬ 
tion on, 190. 

Merchandise stock-turn: 
definition of, 130. 
how to figure, 130. 
illustration, 131. 

Merchandiser, the buyer as a, 212. 
Merchandising: 
definition of, 3. 
necessity for good buying, 4. 


217 


RETAIL BUYING 


Merchandising according to plan, 
213. 

Merchandising plan, 43. 
Merchandising-windows {See Win¬ 
dows) . 

Merchant, the buyer as a, 211. 
Methods of figuring stock-turns, 
126. 

Mink: 
tests for, 75. 

Japanese, 76. 

Muskrat, tests for, 76. 

N 

No-counter idea, 159. 
advantages of, 159. 
use in bargain basements, 159. 
Novelty brands, 36. 
how to buy, 37. 

O 

Odd stock, 166. 

how to handle, 167. 

Open stock, 164. 

arranging and handling, 165. 
filling in, 166. 

P 

Perpetual inventory, 147. 

{See Continuous). 

Preparing for the inventory, 139. 
examples of preliminary work, 
140. 

Price, cost or selling, 115. 
Price-cutting competition, how to 
meet, 99. 

Prices: 

clearance, 60. 

determination of asking, 58. 
quantity, 58. 

Prices and profits, determining, 

109. 

old methods of figuring vs. new, 

110 . 

Prices, special, by clubbing sales¬ 
men, 89. 

Pricing merchandise, 119. 
basis of, 117. 


Private brands, advantages and 
disadvantages of, 36. 

Profit, 109. 
figuring, 116. 
gross and net, 114. 
how to figure, 116. 
reasons for figuring on selling 
price, 115. 

Profits, determining prices and, 
109. 

Publications on various types of 
merchandise, 190. 
manufacturers, 175. 


Q 

Qualities, determining: 
methods for furs, 84. 
methods for groceries, 73. 
methods for textiles, 67. 

Quality: 

definition of, 67. 
importance of ability to judge, 
67. 

of fabric, 72. 
of fibers, 71. 
of yarns, 71. 

Quantity prices, 58. 

R 

Raccoon, tests for, 79. 

Raw materials, necessity for know- 
• 7 - 

Receiving-rooms, advantages of 
having, 162. 

Reserve-stock room: 
argument against, 163. 
space for, 162. 

Returns, 63. 

S 

Salesman, 19. 

as help to merchant, 21. 
Salesman, buyer as a, 212. 
Salespeople: 
instructions to, 173. 
meetings of, 174. 
personal attention to, 175, 


218 


INDEX 


Sample lines, 93. 

Sampling, 163. 

Seal: 

electric, 79. 

Hudson, 77. 
near, 79. 

selection for qualities, workman¬ 
ship, and finish, 57. 
styles, colors, and sizes, 57. 
Selling expense vs. waste, 112. 
Selling-field, analysis of, 43. 
Selling-prices, necessity for know¬ 
ing, 7. 

Shoes—how to handle old stock, 
167. 

Show-cards, value and use of, 209. 
Silk: 

and wool, 70. 
description of, 69. 
tests for, 69. 

Skunk, tests for, 80. 

Special displays, 209. 

Special requests, 95. 

Specialty shops, continuous in¬ 
ventory systems for, 152. 
Steps in buying, 54. 

Stock-keeping an art, 166. 
Stock-keeping systems, 154. 

Stock, old. 0 See Old stock.) 

Stock, open. (See Open stock.) 
Stock-recording: 
importance of, 170. 
method of, 170. 
systems of, 171. 

Stock-recording systems, 171. 
Stock, shifting and examining regu¬ 
larly, 140. 

Stock systems, 121. 

Stocks, average methods of finding, 
136. 

Stock-turns: 

in branded merchandise, 34. 
in department stores, 130. 
methods of figuring, 126. 
store arrangement, 160. 

Store fixtures: 

for up-stairs store, 158. 
necessity for attractive, 155. 
should be adapted to trade, 156. 
Store records, necessity for know¬ 
ing, 8. 


Subdivision of steps in buying, 55. 
Systems, stock, 121. 

T 

Taking stock during business 
hours, 142. 

Tea—talking-points for salesmen, 
189. 

Teaching points on merchandise, 
176. 

Terms and discounts, 60. 

Textiles, 67. 

Time for window displays, 206. 
Trade journals, 175. 

Trimmer, 194. 

Turnover: 
capital, 133. 
merchandise stock, 130. 
the importance of, 123. 
Turnovers in groceries, 126. 

U 

United Cigar Stores Company, 
reasons for the success of, 124. 
Up-stairs store, 158. 

y 

Value of good displays, 193. 

of windows, 195. 

Visiting the market: 
necessity for, 24. 
time for, 24. 

W 

Wanamaker, John, introduction of 
no-counter idea, 159. 
Want-books, 95, 166. 

Waste vs. selling expense, 112. 
Window display: 

color harmony in, 201. 
purpose of, 200. 

selection of merchandise to be 
shown in, 200. 
time-chart for, 206. 
time for, 206. 


219 


RETAIL BUYING 


Windows: 

amount of merchandise to be 
shown in, 197. 

artistic vs. merchandising, 196. 
backgrounds for display in 
197. 

flooring for, 198. 
method of allocating expenses, 
196. 

value of display in, 195. 


Women’s ready-to-wear, use of 
continuous inventory in, 147. 
Wool: 

description of, 68. 
test for, 68. 

Y 

Yarns: 

quality of, 71. 
tests for, 71. 


THE END 










































































































































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